Lobbying

“Bottom Line” in The Hill.

“Big Business’ Summer Agenda | K Street Files” by Kate Ackley in Roll Call.

“States and Localities Are Losing Their Influence in Washington” by J. B. Wogan in Governing.

Campaign Finance

“Campaigns Ignore State Law at Their Peril | A Question of Ethics” by C. Simon Davidson in Roll Call.

California: “L.A. County requires electronic filings of campaign finance reports” by Abby Sewell in the Los Angeles Times.

Massachusetts: “Campaign finance bill is now law” by Douglas Moser in the Eagle-Tribune.

Wisconsin: “Judge who stopped Wisconsin campaign finance probe tied to Koch-funded junkets” by Chris Young in The Center for Public Integrity.

Ethics

North Carolina: “North Carolina elections board hiring longtime FBI agent to work on investigation team” by The Associated Press in The Republic.

South Carolina: “SC Senate votes against House ethics plan” by The Associated Press in The State.

Elections

“Oldest lawmaker kicked out” by Cameron Joseph in The Hill.

“An Update on the 2014 State Legislators to Watch” by Louis Jacobson in Governing.

“A Guide to the 36 Governors’ Races” by Louis Jacobson in Governing.

Texas: “Tea Party Conservatives Win Top GOP Runoff Contests” by Brandi Grissom in The Texas Tribune.

National:

Glass Ceilings in Statehouses in the Northeast

New York Times – Jonathan Martin | Published: 5/18/2014

The Democratic Party has yet to elect a female governor in Pennsylvania, New Jersey, New York, Rhode Island, or Massachusetts. Even this year, with women running for governor in three of those states, it is uncertain that any of them will break the pattern. It is no quirk of history, according to a few dozen politicians, scholars, and strategists who have examined or experienced firsthand the difficulties women have had in seeking to become chief executives in some of the flagship states of blue America.

From the States and Municipalities:

Connecticut – Judge Orders Settlement Try in DGA Campaign Case

Connecticut Mirror – Mark Pazniokas | Published: 5/21/2014

U.S. District Court Judge Janet Hall ordered settlement talks to begin in a case in which the Democratic Governors Association (DGA) claims the State Elections Enforcement Commission and Connecticut campaign laws restrict its First Amendment right to spend money on behalf of Gov. Dannel Malloy in the coming election. Hall sharply questioned lawyers for both sides in open court, probing the DGA’s legal standing to challenge a statute it is yet to be accused of violating, and testing whether the state law comports with recent court rulings minimizing restrictions on campaign contributions.

Delaware – Markell Ties Benefit from Collections Contracts

Delmarva Daily Times – Jonathan Starkey (Wilmington News Journal) | Published: 5/19/2014

Gov. Jack Markell’s administration has paid millions of dollars to law firms tied to supporters and former staff members that were hired to help collect money from out-of-state businesses incorporated in Delaware. Nothing about the relationships and contracts is illegal. But the contracts raise questions about how Markell, who came into the governor’s office critical of backroom deals that benefit insiders, runs the program that collects so much state revenue. James Browning of Common Cause said the state should require better lobbying disclosures for those seeking public business.

Georgia – Ethics Commission Whistleblower Talks About Trial

WXIA – Catherine Beck | Published: 5/21/2014

In an interview, former state ethics commission Executive Secretary Stacey Kalberman recounted the turbulent last three years she has faced. In dealing with an ethics case against Georgia Gov. Nathan Deal, Kalberman lost her job, her professional reputation, and the Atlanta community she had lived in for more than 25 years. But she won from a jury what she needed the most: vindication.

Illinois – Watchdog Wants Stricter Cook County Lobbying Rules

Chicago Tribune – Hal Dardick | Published: 5/19/2014

Cook County Inspector General Patrick Blanchard issued a report that calls for stricter rules after finding “rogue lobbyists” are ignoring requirements to register or report their activities. He said people selling products to the government escape from all lobbying requirements under a loophole in the county ordinance. County Clerk David Orr, who introduced the county’s lobbyist reporting requirements, said he was open to the reforms that Blanchard proposed.

Indiana – State Giving $345K to Eric Turner Company Project

Belleville News Democrat – Tom LoBianco (Associated Press) | Published: 5/20/2014

The Indiana Economic Development Corp. awarded Mainstreet Property Group $345,000 for the construction of a nursing home that is expected to net House Speaker Pro Tem Eric Turner $1.8 million. It was one of many Mainstreet projects that Turner helped save when he defeated legislation that would have banned the construction of new nursing homes. Turner owns 50 percent of a company which owns 76 percent of Mainstreet.

Louisiana – Federal Judge: Ethics gag rule is unconstitutional

New Orleans Advocate – Sara Pagones and Faimon Roberts III | Published: 5/16/2014

A federal judge granted Terry and Laura King’s request to strike down a state law under which the couple was charged with a crime for allegedly making public statements about an ethics complaint they filed against St. Tammany Parish Coroner Peter Galvan. The Kings filed a lawsuit challenging the constitutionality of the law, saying it violates citizens’ rights to freedom of speech. U.S. District Court Judge Martin Feldman agreed that the section of the law used to prosecute the Kings is too broad.

Maine – National Anti-Same-Sex Marriage Group Could Be Fined for Role in 2009 Campaign

Portland Press Herald – Eric Russell | Published: 5/19/2014

A national group that helped defeat a same-sex marriage law in Maine could face more than $50,000 in fines for violating the state’s campaign finance laws. The state ethics commission said its investigators found the National Organization for Marriage (NOM) should be fined for failing to register as a ballot question committee and not filing reports. NOM was the primary donor when it gave nearly $2 million to Stand for Marriage Maine, a PAC, to help defeat the law in a 2009 referendum. State law requires groups to register if they raise or spend more than $5,000 to influence a state ballot question.

Massachusetts – Mayor Walsh Received $1.4M in Gifts for Gala, Transition

Boston Globe – Andrew Ryan | Published: 5/19/2014

Boston Mayor Martin Walsh received $1.4 million in private donations for his inauguration and transition, with most of the contributions coming from corporations, developers, lobbyists, and others who do business with the city. Walsh used no tax dollars for the January inauguration, and he barred money from PACS and organized labor, although unions hosted a private reception for the new mayor. The administration suggested a cap of $25,000 for donors and voluntarily disclosed all contributions and expenditures. Walsh said it did not pose a conflict to accept money from companies with interests before the city.

Minnesota – Federal Court: Minnesota must lift limit on political donations

Minneapolis Star Tribune – Rachel Stassen-Berger | Published: 5/20/2014

Minnesota’s law limiting the amount of money candidates can take from lobbyists, PACs, and big donors is on hold after a ruling by a federal judge. U.S. District Court Judge Donovan Frank suspended the law while a court challenge plays out. The statute in question says candidates can only accept 20 percent of their contributions from certain types of donors and then must abide by lower limits after that.

New Jersey – National Group Gives NJ Contractors a New Way to Influence Elections

Newark Star Ledger – Matt Friedman | Published: 5/18/2014

Contributions to GOPAC, a Washington-based nonprofit political advocacy group, reveal how such organizations allow contractors to get around state and local laws designed to keep them from making big campaign donations in New Jersey. Some of the candidates and committees were restricted from taking major donations directly from the contractors because of New Jersey’s web of “pay-to-play” laws aimed at keeping political money from influencing the awarding of contracts. But the contractors are free to donate to GOPAC, which is allowed to give money to any candidate.

North Carolina – NC Legislature Adopts New Rules on Protests

Raleigh News & Observer – Craig Jarvis | Published: 5/15/2014

North Carolina lawmakers adopted new rules governing protests at the Legislative Building. The move was prompted by legal concerns over the guidelines cited by judges hearing the cases of some of the more than 900 people who were arrested in last year’s “Moral Mondays” demonstrations at the General Assembly. But the process, rushed through on the second day of session in advance of the anticipated first round of protests this year, drew criticism from Democratic legislators.

Oklahoma – Oklahoma Gov. Mary Fallin Signs Bill to Change Local Campaign Finance Reporting Law

The Oklahoman – Rick Green | Published: 5/20/2014

A bill signed into law by Oklahoma Gov. Mary Fallin imposes a new disclosure requirement for groups that make independent expenditures to local campaigns. These groups will be required to identify donors who contribute more than $50. The law also designates the state Ethics Commission as the body to enforce local campaign finance statutes.

Vermont – Donor Rules Same for All VT Candidates

Burlington Free Press – Nancy Remsen | Published: 5/19/2014

Vermont Attorney General William Sorrell issued guidance saying the state would not enforce different contribution limits for candidates who run in both a primary and general election and candidates running for the same office who have only one election. All candidates will now be allowed to accept $2,000 per donor, even if they do not have a primary. This policy applies through December 31, 2014, after which new donations limits take effect for the next election cycle.

Wisconsin – Lobbyists to Be Allowed to Make Campaign Donations during Legislative Session

Wisconsin State Journal – Mary Spicuzza | Published: 5/22/2014

The Wisconsin Government Accountability Board said lobbyists can pass along campaign contributions made by others, such as PACs, at any time of the year. A new campaign finance law raised questions about what the rules for lobbyists were. The board decided that timing limitations for lobbyist donations to candidates apply only to personal contributions, and not those they are delivering on behalf of others.

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.

Commissioner of Lobbying Karen Shepherd intends to revise the Lobbyists’ Code of Conduct following a period of public consultation launched in September 2013.

The consultation offered participants the chance to submit suggestions for improvement by writing and by roundtable discussion. Suggestions included deregulation of lobbyist-client interactions and more clarity in the gift law.

Shepherd has produced a report on the consultation available here.

Lobbying

“Former Rep. Billy Tauzin joins son’s lobby firm” by Megan R. Wilson in The Hill.

Canada: “Lobbyist watchdog to revise conduct code this summer” by Kady O’Malley on CBC News.

Campaign Finance

“Campaign Finance Reports Put Voters on Notice” by The Associated Press on ABC News.

“The new campaign contribution: I’ll get my employees to vote for you” by Philip Bump in The Washington Post.

“State campaign finance laws are on borrowed time” opinion piece by George F. Will in The Washington Post.

Michigan: “Ex-Meijer attorney cleared of wrongdoing in Northern Michigan campaign finance scandal” by Shandra Martinez in Michigan Live.

Ethics

Georgia: “Kalberman ethics case to cost state over $1 million” by Aaron Gould Sheinin in The Atlanta Journal-Constitution.

Hawaii: “State Task Force Members Must Disclose Financial Ties Under Ethics Ruling” by Nathan Eagle in the Honolulu Civil Beat.

South Carolina: “SC House’s latest version of ethics reform creates super commission to investigate allegations” by Andrew Coffman Smith (Associated Press) in The Republic.

State Legislatures

Arizona: “Brewer expected to call special legislative session on CPS today” by Howard Fischer in the Arizona Daily Star.

Minnesota: “Sen. Gazelka comments on end of 2014 Legislative Session” in the Pilot-Independent.

Montana: “Special legislative session for Medicaid expansion, other issues?” by Mike Dennison in the Billings Gazette.

Redistricting

Florida: “In redistricting first, House speaker testifies in court to defend map” by Mary Ellen Klas in the Miami Herald.

Illinois: “Illinois redistricting group lacks signatures” by Chacour Koop (Associated Press) in the Northwest Herald.

Virginia: “Va. redistricting trial begins in federal court” by The Associated Press in the Washington Times.

Oklahoma Gov. Mary Fallin signed three ethics bills into law on Monday, May 19. The new laws coincide with proposed Ethics Commission Rules affecting the regulation of lobbyists and campaign finance.

The Rules, promulgated by the Ethics Commission in January, were submitted to the governor and both houses of the legislature on February 4, 2014. If the legislature does not reject them in their entirety prior to adjournment sine die, the Rules will become effective at staggered intervals between December 1, 2014 and February 1, 2015.

The three bills recently signed into law will become effective January 1, 2015 to facilitate the change in ethics rules. Senate Bill 1744 modifies campaign finance definitions, removes statutory contribution limits, and instead, references the limits established by the state Ethics Commission. The measure also prohibits contributions from corporations, labor unions, LLCs, and partnerships except as allowed by law or in the Ethics Commission Rules.

Senate Bill 1745 gives the Ethics Commission jurisdiction over municipal races and establishes enforcement mechanisms to coincide with local campaign finance laws.

Lastly, Senate Bill 1746 deletes statutory lobbyist registration and reporting requirements and, instead, references Ethics Commission Rules. The newly signed legislation moves the state one step closer to much needed ethics reform.

Lobbying

“Telecom merger mania hits K Street” by Anna Palmer in Politico.

Illinois: “Quinn wants limits on lobbying by former aides” by Kurt Erickson in the Pantagraph.

Kentucky: “More than $8.25 mil spent lobbying in Frankfort” by Tim Loftus in The Courier-Journal.

Wisconsin: “State panel to decide rules for some lobbyist donations” by Patrick Marley in the Journal Sentinel.

Campaign Finance

“Campaign Bitcoins Proliferate, but FEC Rules Unclear” by Eliza Newlin Carney in Roll Call.

“The new campaign contribution: I’ll get my employees to vote for you” by Philip Bump in The Washington Post.

California: “California Lt. Gov. Gavin Newsom Among First Politicians Opening Coffers to Bitcoin” by Joe Garolfoli in Government Technology.

Oklahoma: “Electoral dysfunction” by Ben Felder in the Oklahoma Gazette.

Ethics

Virginia: “Bob McDonnell, wife to be tried together” by The Associated Press in Politico.

Elections

“Payback time: GOP incumbents learn how to win” by Alexander Burns in Politico.

“GOP Sees Primaries Taming the Tea Party” by Janet Hook and Patrick O’Connor in The Wall Street Journal.

Arkansas: “Ross, Hutchinson win primaries” by Andrew DeMillo (Associated Press) in The Baxter Bulletin.

Georgia: “Georgia Senate runoff: Nasty, brutish — and long” by Manu Raju in Politico.

Idaho: “Idaho Gov. Otter holding off challengers” by Betsy Z. Russell in The Spokesman-Review.

Pennsylvania: “Wolf leaves the pack behind” by Chris Brennan in the Philadelphia Inquirer.

Pennsylvania: “Philly Politicians Must Keep Resigning to Run for Office” by Claudia Vargas in Governing.

State Legislatures

Connecticut: “The Chocolate Milk Ban And Other Legislative Goofs” by Gregory B. Hladky in The Courant.

Lobbying

“Report: Health lobbying down in first quarter” by Elise Viebeck in The Hill.

“President Obama golfed with Bain Capital lobbyist” by Byron Tau in Politico.

“Patton Boggs future up for a vote” by Tucker Echols in the Washington Business Journal.

Hawaii: “Will Lawmakers Ever Do Anything About Lobbyists?” by Patti Epler in the Honolulu Civil Beat.

Illinois: “Ex-Quinn chief of staff turns to lobbying” by The Associated Press in the Chicago Sun-Times.

New Hampshire: “Secretary of state candidate de Ramel proposes changes for lobbyists” by Randal Edgar in the Providence Journal.

Oregon: “Oregon’s House clerk out after PERS lobbying flap” in the Portland Business Journal.

Oregon: “Portland Business Alliance violates city lobbying rules by not reporting meeting, correspondence” by Brad Schmidt in The Oregonian.

Tennessee: “Lobbyists spent record amount of $650K last year, could spend more this year” by The Associated Press in The Republic.

Campaign Finance

“Here’s how to put everyday citizens in charge of financing campaigns” by U.S. Rep. John Sarbanes in The Washington Post.

“Rethinking Campaign Finance” op-ed by Joe Nocera in The New York Times.

“There’s a Better Way to Measure Who Has Raised the Most Money” by Derek Willis in The New York Times.

“Campaign-Finance Measure May Come to Vote in U.S. Senate” by Kathleen Hunter in Bloomberg.

“Hearing set for proposed campaign finance change” in the Burlington Free Press.

“Newest Member of Congress Joins Washington Money Circuit, Starts PAC” by Kent Cooper in Roll Call.

Oklahoma: “Lawyers dominate judicial campaign funding” by Curtis Killman in Tulsa World.

Wisconsin: “Confusion Reigns on Campaign-Finance Law” by Steven Walters in Urban Milwaukee.

Ethics

“Senate Enters Electronic Age With Personal Wealth Disclosures” by Kent Cooper in Roll Call.

Illinois: “5th anniversary of anti-corruption campaign no celebration” by Andy Shaw in the Chicago Sun-Times.

Louisiana: “State law forbidding disclosure of ethics complaints ruled invalid” by Robert Rhoden in The Times-Picayune.

West Virginia: “W.Va. Ethics Commission sets training session” by The Associated Press on WOWK TV News.

Redistricting

Florida: “Courtroom clash pits Democrats, Republicans in epic redistricting battle” by Mary Ellen Klas in the Miami Herald.

Government Tech and Social Media

“Social government makes inroads with citizens” by Jake Williams in Fedscoop.

“Agencies Often Don’t Answer Questions They Get Via Social Media, Survey Finds” by Rebecca Carroll in Nextgov.

In late 2013, the New York City Council passed Local Law 129 of 2013, making many changes to current lobbying law in the city and surrounding boroughs. Many of the new law’s provisions are effective today, May 16, 2014.

The definition of lobbying is revised to include attempts to influence legislation not yet introduced, legislation at the state and federal level, and mayoral executive vetoes. It is also revised to include attempts to influence the agenda or calendaring of a meeting of a board or commission. The revised definition excludes architects and engineers as lobbyists under certain parameters, and the law now imposes a $10,000 registration threshold for such individuals should they undertake lobbying activities. The registration threshold for all other lobbyists is $5,000.

Local Law 129 of 2013 requires more detailed disclosure on the statement of registration and on periodic reports. The new law further establishes a first-of-its-kind amnesty program, allowing noncomplying lobbyists to enroll in the program and be exonerated of late filing fees and applicable civil and criminal penalties dating back to December 10, 2006.

Provisions taking effect in the future include a mandatory lobbyist training program and the practice of the city clerk reviewing sources of information such as state lobbyist filings and the Doing Business Database to identify lobbyists required to register who have not done so.

Photo of the New York City Hall courtesy of Momos on Wikimedia Commons.

National:

GOP Civil War Rages in Senate Primary Battles

The Center for Public Integrity – Dave Levinthal | Published: 5/8/2014

Hard-line conservative groups have together spent nearly three dollars attacking Republican candidates for every one dollar spent criticizing Democrats, according to a Center for Public Integrity analysis. The dichotomy illustrates the family feud between mainstream Republicans and their tea party-affiliated cousins, many of whom have forced GOP incumbents into expensive primary fights because they believe the candidates are not conservative enough.

Koch Brothers’ Americans for Prosperity Plans $125 Million Spending Spree

Politico – Byron Tau | Published: 5/9/2014

Americans for Prosperity expects to spend more than $125 million this year in support of conservative candidates. The plans, combined with those of other groups in the political operation affiliated with the billionaire industrialists Charles and David Koch, more closely resemble the traditional functions of a national political party than a network of private nonprofit groups. The goal of the network is a long-term movement to expand the political playing field for conservatives, both into new states and into non-traditional demographics.

From the States and Municipalities:

Arizona – Tom Horne Campaign Finance Case to Move Forward

Arizona Capitol Times – Jeremy Duda | Published: 5/14/2014

Yavapai County Attorney Sheila Polk rejected an administrative judge’s conclusion that there is not enough evidence to show Arizona Attorney General Tom Horne and Kathleen Winn, who ran an independent expenditure committee during the 2010 election, illegally coordinated their activities. Polk’s office maintains that records show the two illegally collaborated on ads attacking Horne’s Democratic opponent. Polk has ordered Horne to return about $400,000 to donors and amend his campaign finance reports to properly reflect the contributions.

California – Capitol Alert: California Senate passes bill banning fundraisers at lobbyist homes

San Luis Obispo Tribune – Laurel Rosenhall (Sacramento Bee) | Published: 5/12/2014

The California Senate passed a bill that would ban lobbyists from holding campaign fundraisers at their homes for candidates and elected officials. Senate Bill 1441 now moves to the Assembly. A prominent Sacramento lobbyist and nearly 40 politicians got in trouble earlier this year with the Fair Political Practices Commission for home-based fundraising events that exceeded a $500 limit.

California – Gov. Brown Signs Bill to Shed Light on Political ‘Dark Money’

Los Angeles Times – Patrick McGreevy | Published: 5/14/2014

Nonprofit organizations that make political contributions in California will have to disclose more information about the source of their money under a bill signed into law by Gov. Jerry Brown. Senate Bill 27 requires nonprofits to disclose the names of donors who give them $1,000 or more to spend on political activity, if the group makes contributions of more than $50,000 in a year, or $100,000 over four years. The disclosure requirement takes effect for donations made after July 1 of this year.

Florida – Lobbyists at Water Districts Must Register and Disclose under New Ethics Bill

Miami Herald – Dan Christensen | Published: 5/10/2014

Lobbyists hired to influence spending and policy at Florida’s five water management districts must register and disclose their clients under ethics reforms passed by the state Legislature. If signed into law by Gov. Rick Scott, the bill would for the first time apply state lobbying regulations to some special-purpose governments that raise and spend hundreds of millions dollars every year.

Missouri – Flood Flowing, Ethics Bills Dying as Missouri Legislature Nears Adjournment

St. Louis Post-Dispatch – Virginia Young | Published: 5/14/2014

Missouri lawmakers are feted with free food in the Rotunda, hearing rooms, and area restaurants. Big-ticket items outside the Capitol, such as expensive dinners, sporting event tickets, and out-of-state travel, helped push the total value of the gifts to nearly a million dollars’ worth in 2013, according to state Ethics Commission records. That Is unlikely to change as legislators have stymied bills that would ban or limit the gifts they receive.

New York – Inside Moreland: Documents reveal details of lawmakers’ spending

City & State – John Lentz, Matthew Hamilton, and Morgan Pehme | Published: 5/11/2014

To date, there has been considerable speculation about what exactly the recently disbanded Moreland Commission on Public Corruption investigated during the months it was in operation, but few specifics have been disclosed to the public. Now, commission documents show its investigators sought to determine if New York lawmakers were spending the contributions they received for legitimate campaign-oriented purposes, or whether any money was going to their personal use, in violation of state law.

Ohio – McGinty, DeWine Accuse Youngstown Mayor, Mahoning County Official of Racketeering

Cleveland Plain Dealer – John Caniglia | Published: 5/14/2014

Youngstown Mayor John McNally and Mahoning County Auditor Michael Sciortino were indicted on corruption charges including bribery, conspiracy, and tampering with records. The indictment outlines a series of illegal activities related to a plan to move the offices of the county Department of Job and Family Services. McNally and Sciortino were indicted four years ago on related charges, but the case was dismissed. A judge said then that the charges could be refiled. Prosecutors said at the time their inability to obtain tape recordings held by the FBI and provide them to defense lawyers made it impossible to proceed with the case.

Oklahoma – Oklahoma Secondary School Activities Association to Pay $1,200 Fine

The Oklahoman – Nolan Clay | Published: 5/9/2014

The Oklahoma Secondary School Activities Association agreed to stop providing free football and basketball playoff tickets to state legislators, and will pay $1,200 in civil penalties for not disclosing the gifts to the state Ethics Commission for the last three years. The association was required to disclose the gifts once it started using lobbyists. It continues to blame two former lobbyists for the disclosure failure.

Pennsylvania – Candidates’ Parents’ Mutual Donations

Philadelphia Inquirer – Jonathan Tamari | Published: 5/13/2014

During Kevin Strouse’s bid for congressional seat from Pennsylvania, his parents, who had never before donated to federal candidates beyond the commonwealth, sent money to Democrats in tight congressional races in California, Colorado, Florida, and Illinois. Days before or after, those candidates’ parents sent nearly identical contributions, usually for the maximum allowed, to Strouse’s campaign. The donations appear legal, campaign finance experts say, though some said any agreement among the parents to trade donations could be viewed as an attempted end run around contribution limits.

South Carolina – Judge to AG Wilson: Stop SLED and grand jury probe of House Speaker Harrell

The State – John Monk | Published: 5/12/2014

A judge dismissed allegations of corruption against South Carolina House Speaker Bobby Harrell, ruling such a case must first be considered by a legislative panel before state prosecutors could touch it, and saying a grand jury was improperly empaneled. The grand jury had been considering whether Harrell should be indicted on allegations he used campaign funds for personal use. Critics and lawyers following the case said it was a rare, if unprecedented step for a judge to halt a grand jury investigation.

Vermont – AG Clarifies 2014 Campaign Contribution Limits

Burlington Free Press – Nancy Remsen | Published: 5/14/2014

Vermont Attorney General William Sorrell said the state’s campaign contribution limits will remain the same through the end of the year. The secretary of state’s office asked for the formal opinion after the Legislature passed an updated campaign finance law. The law had an error making it appear there was a gap between the date the old limits expire and January 1 when the new caps take effect.

Wisconsin – Federal Appeals Court Tells Wisconsin Regulators That Campaign Finance Laws Went Too Far

Minneapolis Star Tribune – M.L. Johnson (Associated Press) | Published: 5/14/2014

The Seventh Circuit U.S. Court of Appeals struck down major provisions of Wisconsin’s campaign finance law as unconstitutional. The ruling said state elections officials had overstepped their bounds by prohibiting spending by corporations, setting limits on how much they could raise for affiliated political committees, and establishing burdensome rules for groups that merely mentioned candidates’ names in ads.

Wisconsin – Mistake May Bar Lobbyists from Helping with Fundraising

Milwaukee Journal Sentinel – Patrick Marley | Published: 5/8/2014

State election officials said Wisconsin lawmakers may have inadvertently toughened campaign finance rules by barring lobbyists from passing on campaign donations from their clients. Others disagree with that interpretation. The Government Accountability Board will take up the issue on May 21, but the matter may ultimately be decided by the courts.

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

“Which foreign countries spent the most to influence U.S. politics?” by Colby Itkowitz in The Washington Post.

“Patton Boggs lobbyist jumps to Akin Gump” by Megan R. Wilson in The Hill.

“Drone lobby takes flight on K Street” by Megan R. Wilson in The Hill.

Illinois: “U of I lobbying day at Capitol today” by The Associated Press in The State Journal-Register.

North Carolina: “NC lawmakers indulge in pre-session ritual: the fundraiser” by Jim Morrill in the Charlotte Observer.

Campaign Finance

“Federal court rulings prompt wave of states hiking campaign contribution limits” by Luke Wachob in the Washington Examiner.

“Five Joint Fundraising Committees Register at FEC” by Kent Cooper in Roll Call.

California: “Yaroslavsky proposes reforms in county campaign finance system” by Abby Sewell in the Los Angeles Times.

Connecticut: “Campaign Reforms At Stake In Legal Fight” by Edmund H. Mahoney in The Courant.

Delaware: “Illegal Campaign Contributions Could Go To Charity” by Don Rush (Associated Press) on Delmarva Public Radio.

Montana: “Campaign finance rulings split U.S. House candidates” in the Billings Gazette.

Oregon: “Super PACs spend big in Oregon GOP Senate primary” by Jonathan J. Cooper (Associated Press) on KATU.org.

Vermont: “Vermont Attorney General rules campaign limits remain the same for 2014 election cycle” by The Associated Press in the Daily Reporter.

Ethics

Arizona: “Ex-staffer accuses Horne of doing campaign work at the office” by Howard Fischer in the Verde Independent.

Pennsylvania: “PA lawmakers want independent corruption-fighting agency” by Andrew Staub in Watchdog.org.

Government Tech and Social Media

“How to Make Analytics Work for Your Government” by Jason Shueh in Government Technology.

The Government Accountability Board (GAB) has concluded a recently signed law allowing lobbyists to personally give campaign contributions a couple of months earlier also prohibits them from providing such contributions on behalf of clients at any time.

Whether by design or by drafting error, a late amendment to Senate Bill 655 removed the provision to allow a lobbyist to deliver a client’s contribution at any time.

GAB will review the matter at its meeting on May 21, 2014. The Legislature would have to reconvene to fix a drafting error.

Colorado state legislators recently passed a bill aimed at increasing lobbying transparency. Senate Bill 14-217 passed the House by unanimous vote on May 7, demonstrating bipartisan support for changes in lobbyist disclosure requirements.

The bill requires lobbyist subcontractors receiving business from a professional lobbyist to report subcontracting business on their annual disclosure statements though such information is contemporaneously reported on the professional lobbyists’ disclosure statements.

Another legislative provision requires lobbyists to update their registration statements within 24 hours of lobbying for a new client or subcontracting for another lobbyist. Per its design, SB 217 effectively closes a lobbying loophole by allowing the public to connect the lobbyists who subcontract for lobbying firms to the clients hiring such firms.

If signed by Gov. Hickenlooper, the bill will become effective July 1, 2015.

Just over a month ago, the Miami-Dade Commission on Ethics and Public Trust cleared David Beckham of a complaint charging he violated county ethics law by failing to register as a lobbyist. At the time, Beckham’s meetings with Miami-Dade Mayor Carlos Gimenez were characterized as “meet and greets” regarding potential interest in bringing a Major League Soccer franchise to Miami. Once the plans start to take shape, however, individuals meeting with county officials would need to register as lobbyists, according to the Commission’s report.

Now, with potential sites being discussed, Beckham and his business partner Simon Fuller have registered as county lobbyists ahead of their meeting with county commissioners. But, the Miami-Dade Board of County Commissioners may not be the only government body to need convincing on stadium site approval. One of two potential waterfront stadium sites is under the city of Miami’s jurisdiction, and Miami Mayor Tomas Regalado has cautioned voter approval may be required.

David Beckham’s Lobbyist Registration, courtesy of the Miami Herald.

Photo of David Beckham courtesy of Paulblank on Wikimedia Commons.

Federal:

Federal Election Commission Approves Bitcoin Donations to Political Committees

Washington Post – Matea Gold | Published: 5/8/2014

The FEC unanimously ruled that political committees could legally accept bitcoin donations. The commission also affirmed that political committees could buy and sell the digital currency as an investment, as long as they turned those proceeds into dollars before spending them. But after the vote, individual commissioners offered conflicting views on whether their decision limits bitcoin donations to small amounts.

Lobby Cash Goes Underground in PR Boom

The Hill – Megan Wilson | Published: 5/7/2014

While traditional lobbying revenue hit its lowest point in four years in the first months of 2014, according to the Center for Responsive Politics, industry insiders say those statistics miss the hundreds of millions of dollars that are flowing to firms that are not registered to lobby. Companies and industries are increasingly using public relations for a broad array of tasks. Unlike lobbyists, public affairs firms are not required to report their clients, specific activities, or revenue, so the amount of money they take in is hard to determine.

Lobbying 101: K Street goes back to school

Politico – Byron Tau | Published: 5/7/2014

Two brand-new programs will offer aspiring lobbyists and K Street veterans alike a chance to learn new skills and beef up their resumes. George Washington University has instituted a master’s degree with a focus on global advocacy and lobbying. The Public Affairs Council unveiled a certificate program aimed at giving mid-career professionals a chance to expand their expertise and improve their management skills. Other established programs include the Association of Government Relations Professionals’ Lobbying Certificate Program and the Public Affairs and Advocacy Institute at American University.

From the States and Municipalities:

Florida – Miami-Dade Lobbyist in Middle of FBI Sting against Mayors Pleads Guilty

Miami Herald – Jay Weaver | Published: 5/7/2014

Richard Candia, a lobbyist caught up in a FBI sting that also snared two South Florida mayors, pleaded guilty to honest services fraud. The undercover operation revolved around a bogus federal grant program that prosecutors say was designed to line the pockets of the mayors, Candia, and another lobbyist instead of benefiting their cities. Under his plea agreement, Candia is expected to be a key witness for the prosecution in the upcoming trial of former Miami Lakes Mayor Michael Pizzi.

Kansas – Brownback Dismisses Reports of FBI Investigation of Associates as Smear Campaign

Wichita Eagle – Bryan Lowry | Published: 5/5/2014

Kansas Gov. Sam Brownback dismissed reports of an FBI investigation into the activities of his former chief of staff, David Kensinger, as a smear campaign. Sources have said three lobbyists and a former state official were interviewed about whether Kensinger and others have been involved in “pay-to-play’ schemes. Two of the interviewees said they were pressured and intimidated by Kensinger to support and donate to certain candidates. But another said no quid pro quo took place.

Kentucky – In Reversal, Kentucky Legislative Ethics Commission Finds Former Lawmaker John Arnold Guilty

WFPL – Jonathan Meador | Published: 5/7/2014

In the face of a public outcry, the Kentucky Legislative Ethics Commission revisited its sexual-harassment case against former state Rep. John Arnold, finding him guilty of three ethics violations and imposing a $3,000 fine. When the commission originally heard the complaints, the hearing ended in a vote of four-to-one that Arnold was guilty. That vote was insufficient for a finding of guilt because the panel has nine members and five votes are needed to take action. That decision led to much public criticism and prompted leaders from both parties to call on the commission to re-hear the case.

Louisiana – Federal Judge Throws Out Campaign Donor Limits for Super PAC Supporting US Sen. David Vitter

Columbus Republic – Melinda Deslatte (Associated Press) | Published: 5/2/2014

A federal judge barred Louisiana from enforcing its $100,000 cap on donations in a four-year election cycle to a super PAC formed by a lawyer who has said it will advocate for U.S. Sen. David Vitter’s 2015 gubernatorial campaign. U.S. District Court Judge Martin Feldman said the state’s contribution limit was unconstitutional for a group that does not coordinate with candidates and “engages only in independent expenditures,” a ruling that could have widespread implications across Louisiana elections.

Missouri – Familiar Impasse Threatens Ethics Measures

Columbia Daily Tribune; Associated Press –   | Published: 5/4/2014

Opposition has once again emerged to suggest ethics reform is at an impasse at the Missouri General Assembly. During each of the past two sessions, bills to curb lobbying have been derailed in the Senate by Democratic attempts to reinstate campaign contribution limits. Both sides show no signs of backing down before lawmakers adjourn on May 16. A stalemate means Missouri would continue to be the only state that allows the trio of unlimited contributions to candidates, unlimited gifts from lobbyists, and no waiting period before elected officials can lobby.

Montana – GOP Candidate Benefiting from Super PAC He Founded Takes Heat from Fellow Republicans

Huffington Post – Amanda Terkel | Published: 5/7/2014

The decision by Special Operations for America to support Ryan Zinke, a U.S. House candidate in Montana, is not exactly surprising. Zinke founded the super PAC himself two years ago. The group has been running ads touting his candidacy and was even encouraging people to back him before he officially jumped into the race. The two were literally so close that at one point, the super PAC was renting office space from Zinke in a building across the street from his house.

New Jersey – Analysis: Ethics rules don’t keep ex-BPU officials from related industries

Bergen Record – Jean Rimbach | Published: 5/6/2014

Despite ethics rules on the books, top New Jersey Board of Public Utilities (BPU) officials routinely move quickly and easily into the industries that once had cases before them. Unlike some other states, New Jersey has no waiting period, during which departing commissioners face a prohibition on taking a job with a regulated utility, leaving open the opportunity for immediate employment with companies they oversaw. And decisions on what constitutes a banned activity in a post-BPU job are made case by case.

Rhode Island – GTECH Was a Corporate Sponsor for R.I. Senate President Pavia Weed’s Trip to Spain

Providence Journal – Katherine Gregg | Published: 5/2/2014

At least a dozen companies and trade associations that had lobbyists at the Capitol last year provided money to the Senate Presidents Forum, which paid for Rhode Island Senate President Teresa Paiva Weed’s trip to Spain. The state Ethics Commission has placed limits on gifts from “interested” parties, defined as any person or an entity that has a direct financial interest in a decision the public official is authorized to make. Paiva Weed believes such trips provide opportunities to confer with counterparts who face the same kinds of issues as Rhode Island. “I did not have one-on-one meetings with [any] lobbyist,” said Paiva Weed.

Rhode Island – Target 12 Investigation Triggers RI Probe of 38 Studios Lobbying

WPRI – Tim White and Ted Nessi | Published: 5/5/2014

Rhode Island Secretary of State Ralph Mollis will investigate whether 38 Studios, the video game company founded by former Boston Red Sox pitcher Curt Schilling that went bankrupt in 2012, violated state lobbying laws. According to WPRI, 38 Studios did not register any lobbyists with the state while the company was active in Rhode Island, as required by law. But a contract uncovered by the television station showed 38 Studios had agreed to pay $300,000 per year to an associate of the former House Speaker Gordon Fox to work with government agencies and officials.

Texas – Ken Paxton’s Business List Has Surged Since He Entered Legislature

Dallas Morning News – Gromer Jeffers, Jr. | Published: 5/4/2014

Since he joined the Legislature in 2003, Texas Sen. Ken Paxton, who is running for state attorney general, has started or become part of 28 business ventures. Paxton, like other lawmakers, has voted on measures that could affect his personal holdings. He has declined to say how much his net worth has grown since he joined the Legislature, and he has refused to release his federal tax returns. The state requires officeholders to list only broad ranges that their income and investments fall in, so it is difficult to say how extensive Paxton’s business holdings are.

Wisconsin – Conflicting Rulings Cloud Wisconsin Campaign Finance Inquiry

New York Times – Monica Davey | Published: 5/7/2014

A U.S. appeals court ruled Wisconsin investigators can continue a secret probe into possible campaign finance law violations by conservative groups in the state. The order stopped for now enforcement of a federal judge’s ruling that the 20-month inquiry must be halted, and records and property seized by investigators returned to the Wisconsin Club for Growth, the group that sued to halt the probe.

Wisconsin – Wisconsin to No Longer Have Aggregate Campaign Funding Limits after Federal Lawsuit Settled

Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 5/8/2014

Wisconsin has reached a settlement in a federal lawsuit challenging the state’s limits on how much individuals can contribute to campaigns. The state law prohibits donors from giving more than $10,000 a year to all candidates. The settlement says in light of a U.S. Supreme Court ruling, Wisconsin’s law is unconstitutional so donors now will be able to spend as much as they want in aggregate to PACs and political parties.

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