In honor of Thanksgiving and the short work week, we are publishing our weekly News You Can Use Digest today, instead of Friday.

Federal:

How Much Lobbying Is There in Washington? It’s DOUBLE What You Think

Sunlight Foundation – Tim LaPira | Published: 11/25/2013

The Sunlight Foundation attempted to find out the amount of lobbying that goes on in Washington D.C., but found that quantifying the number is needlessly difficult. It did say about half of those involved in policy advocacy – the term used in the analysis for people in the private sector getting paid to influence public policy, regardless if they meet the strict federal definition of “lobbyist” – did not report lobbying activities in 2012.

Obama Administration Proposes New Curbs on Campaigning by Tax-Exempt Groups

Wall Street Journal – John McKinnon and Brody Mullins | Published: 11/26/2013

Rules proposed by the Obama administration would curtail a broad array of tax-exempt entities’ political activities, including advertising and voter registration. The involvement in politics of groups organized under section 501(c)(4) of the tax code has been viewed by many as the biggest abuse of modern campaign finance rules. The process of completing the new regulations could take months, and officials said they expected a lot of feedback.

Stockman’s Filings Don’t Explain His Income

Houston Chronicle – Lise Olsen and Will Tucker | Published: 11/25/2013

U.S. Rep. Steve Stockman (R-Texas) has failed to properly disclose his financial dealings as candidate and member of Congress. A Houston Chronicle investigation shows Stockman has failed to file federally required expense documents since his 2012 campaign; those he did file were months late and only prompted more questions.

From the States and Municipalities:

California – Political Watchdog Seeks More Bite with New Law

San Francisco Chronicle – Melody Gutierrez | Published: 11/22/2013

The California Fair Political Practices Commission is trying to collect almost $3 million in past fines, and a new law that takes effect on January 1 will aide those efforts. The law allows tax and property liens, along with wage garnishments, for those who have outstanding fines. Commission officials said it can take more than a year to navigate civil courts to obtain those judgments, but under the new law, that time will be reduced to a few months.

Connecticut – After School Shooting, Newtown-Based Gun Industry Group Considered Leaving Town

Columbus Republic – Susan Haigh (Associated Press) | Published: 11/22/2013

The National Shooting Sports Foundation considered moving its offices from Newtown, Connecticut after last year’s shooting at Sandy Hook Elementary School. With employees confronted by angry neighbors and protesters appearing outside its headquarters, foundation officials said they had to determine whether having the name of Newtown associated with the organization would affect its mission to promote hunting and shooting sports.

Iowa – Iowa Ethics Board to Consider New Standards for Reviewing Donations from Trusts

Des Moines Register – Jason Noble | Published: 11/22/2013

Staff members for the Iowa Ethics and Campaign Disclosure Board will develop new standards for auditing PACS that receive contributions from entities other than individuals. The move could lead to new procedures for reviewing donations from trade associations, LLCs, partnerships, and trusts. The board will hear proposals for the new guidelines at its next meeting and could act to implement them at that time.

Louisiana – State Plans to Go After Bank Accounts, Licenses of Officials with Pending Ethics Fines, Treasurer Says

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/22/2013

Louisiana’s Debt Recovery Office will be used to crackdown on officials, political groups, and lobbyists that owe more than $1.2 million in ethics fines. The new office will have the power to collect money directly from the personal bank accounts of those with outstanding state debts. It also will be able to suspend debtors’ state licenses, including licenses for professional accreditations, and even for hunting and fishing.

Maryland – Brown Hosts Influential Guests in Redskins Stadium Skybox

Baltimore Sun – Luke Broadwater and Michael Dresser | Published: 11/22/2013

Maryland Lt. Gov. Anthony Brown, who is running for governor, has hosted lobbyists, campaign donors, and union leaders in the state’s skybox at FedEx Field for Washington Redskins’ games. Ethics rules prohibit politicians from accepting sporting tickets as gifts from those who do business with the state, but they say nothing about politicians distributing such tickets.

New Jersey – NJ Businesses Paying Top Dollar for Access to Republican Governors Association

Bergen Record – Melissa Hayes | Published: 11/24/2013

Of the $24 million the Republican Governors Association (RGA) raised in the first six months of the year, New Jersey benefactors gave $1.6 million. Montclair State University professor Brigid Harrison said corporations who see Gov. Chris Christie as a potential presidential candidate could increase their donations to the RGA while he is chairperson next year to get his attention and “curry favor” with someone who could go on to the White House.

New York – Legislators Seek to Kill Subpoenas

Albany Times Union – Rick Karlin and Jordan Carleo-Evangelist | Published: 11/22/2013

State lawmakers filed court papers to block subpoenas from the Moreland Commission on Public Corruption that seek information about elected officials’ sources of outside income. The central question is whether the century-old Moreland Act gives gubernatorial appointees the power to subpoena lawmakers, or whether the constitutional separation of powers provides protection from probes.

Oklahoma – Late Campaign Reports Rack Up $723,000 in Fees

Tulsa World – Barbara Hoberock and Curtis Killman | Published: 11/26/2013

A Tulsa World analysis indicates at least 2,700 campaign finance reports, amounting to about 10 percent of the total number filed in Oklahoma, were sent in late. The amount in late fees came to at least $723,300. The Oklahoma Ethics Commission will send notices to 250 PACs believed to owe penalties for not meeting the deadlines. The agency is looking at reports filed since August 2011, but has not ruled out going further back.

Virginia – Virginia Campaign Mailings Attract Scrutiny

Roanoke Times – Mike Gangloff | Published: 11/20/2013

An arrangement for low rates on campaign mailers that some Virginia General Assembly members and candidates describe as standard seems to violate U.S. Postal Service requirements, said Katina Fields, a spokesperson in the postal service’s Washington, D.C. headquarters. At issue is how closely state Democratic and Republican parties coordinate their activities with the individual campaigns of their candidates.

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.

National:

‘Citizens United’ Ruling Helped Unions Win State Elections

The Center for Public Integrity – Alan Suderman and Ben Weider | Published: 11/14/2013

Nonprofits, super PACs, and other non-candidate groups reported spending at least $209 million to influence elections in 38 states in 2012, according to the Center for Public Integrity. More than one out of every two dollars spent originated from groups funded primarily or entirely by out-of-state donors. Even seemingly local entities, like state parties, were recipients of huge influxes of outside cash.

Federal:

FEC: Donors can’t use bitcoins for contributions

San Diego Union Tribune – Jack Gillum (Associated Press) | Published: 11/21/2013

The FEC said bitcoins cannot be used for contributions to political organizations at this time. Bitcoin is a cybercurrency that is relatively anonymous and is created and exchanged independently of any government or bank. Some retailers accept it, and the currency can be converted into cash after being deposited into virtual wallets. But the FEC is not yet sold on allowing bitcoins to funnel into the accounts of campaigns and outside groups supporting them.

Navy Was Warned of Contractor at Center of Bribery Inquiry

New York Times – Christopher Drew | Published: 11/20/2013

Leonard Francis, a wealthy Malaysian contractor, is at the center of a widening investigation into an overbilling scheme in which federal prosecutors say he used cash, prostitutes, and gifts to bribe U.S. Navy officials to help him defraud the service. Despite red flags over his business practices, the Navy awarded Francis $200 million in contracts, giving him control over providing supplies and dockside services for its fleet across the Pacific.

From the States and Municipalities:

California – What a Day for Political Ethics in California

Sacramento Bee – Laurel Rosenhall | Published: 11/16/2013

On the same day, the Democratic leader of the California Senate addressed the latest allegations in an FBI corruption probe, a state senator took the witness stand to testify he had not engaged in money laundering, and the Fair Political Practices Commission handed down fines to one current and two past lawmakers who admitted campaign finance violations.

Colorado – Ethics Complaint against Rocky Mountain Gun Owners’ Lobbyist Dismissed; Federal Lawsuit Still Pending

Denver Post – Lynn Bartels | Published: 11/19/2013

A legislative committee said there is not enough evidence to settle an ethics complaint against Joe Neville, a lobbyist for Rocky Mountain Gun Owners. He allegedly threatened state Rep. Cheri Gerou with political retribution if she did not oppose all of the Democratic bills aimed at strengthening gun laws earlier this year. Neville could still face disciplinary action including a two-year suspension of his lobbying privileges at the Capitol.

District of Columbia – Capital Gains: Spending on contracts and lobbying propels a wave of new wealth in D .C.

Washington Post – Greg Jaffe and Jim Tankersly | Published: 11/17/2013

Tens of thousands of the nation’s best-educated workers have flocked to the Washington, D.C. region, some for contracting jobs, and some simply to be part of the newly energized business climate. The avalanche of cash that made Washington rich in the last decade has transformed the culture of a once staid capital and created a new wave of well-heeled insiders.

Louisiana – Apparent Campaign Violations, Large Expenses Should Prompt Reforms in Louisiana Law, Some Say

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/20/2013

A review of Louisiana’s campaign finance system by The New Orleans Times Picayune is prompting calls for reform. The analysis found individual donors and special interests can legally bundle corporate and personal contributions to exert outsized influence. It also discovered politicians who collected large amounts in over-the-limit, and apparently illegal, contributions, yet went undetected by the state Board of Ethics.

Michigan – State Senate Aims to Quash Proposal for Greater Transparency in Political Ads

Detroit Free Press – Paul Egan and Kathleen Gray | Published: 11/14/2013

Secretary of State Ruth Johnson said she intends to expand Michigan’s campaign disclosure rules to include issue ads, but the state Senate promptly passed a bill that would slam the door on her proposal. An amendment was added to a bill doubling the state’s campaign finance contribution limits that would allow sponsors of ads not specifically urging a vote for or against a candidate to remain anonymous.

Nevada – Judge Imposes $110,000 Fine over PAC’s Pro-Sandoval Ads

Las Vegas Sun – Cy Ryan | Published: 11/18/2013

A judge levied a fine of $109,560 against the Alliance for America’s Future over advertising that supported Nevada Gov. Brian Sandoval. The PAC did not register in the state as required by law and never filed any reports detailing its expenditures. District Court Judge James Wilson rejected the group’s claim that the law was unconstitutional.

New Jersey – Annual Political Schmooze Fest Begins in Atlantic City Today

NJ.com – Darrel Isherwood | Published: 11/19/2013

Approximately 18,000 officials will attend the annual League of Municipalities convention in Atlantic City this year. The event is more well-known for parties than its training sessions. “I’ve gone to the [convention] for the past 15 years and I’ve only paid to attend the sessions twice in that time,” said one prominent lobbyist.

Ohio – State School Board Lobbyists Deny Conflict of Interest

Columbus Dispatch – Doug Livingston (Akron Beacon Journal) | Published: 11/17/2013

At least four state school board members in Ohio have business and private interests that compete directly for education money. They maintain there is no problem with this activity as they police themselves, abstain from voting as necessary, and file statements with the Ohio Ethics Commission. While state lawmakers cannot lobby while in office, Ethics Commission Executive Director Paul Nick said the lobbying law does not address the state school board.

Oklahoma – Rep. Reynolds Blasts Ethics Commission for Proposed Rules

Norman Transcript; Staff –   | Published: 11/19/2013

State Rep. Mike Reynolds criticized the Oklahoma Ethics Commission for its proposed changes to lobbyist reporting and registration rules, along with other reforms. Lobbyists’ employers are now prohibited from spending more than $100 per calendar year per lawmaker. But the commission would allow principals to provide $500 for meals and other gifts, among other changes. Reynolds said will introduce a resolution during the upcoming legislative session to disapprove the proposed rules.

Pennsylvania – Officials, Others Slam Proposed City Ethics Rule

Philadelphia Inquirer – Claudia Vargas | Published: 11/20/2013

Many witnesses at a Philadelphia Board of Ethics hearing criticized a plan to place specific limits on the city’s vague gift rules. The proposed caps, meant to better define the current law, would allow city officers and employees to accept gifts of up to $200 in value per year from any single source, including cash payments of up to $50.

Utah – Utah A.G. John Swallow Cuts Deal, Will Resign to Avoid Criminal Charges, Source Says

Deseret News – Lisa Riley Roche and Dennis Romboy | Published: 11/21/2013

Utah Attorney General John Swallow is expected to resign in the face of mounting investigations and a report from the lieutenant governor’s office that recommended charging him with three misdemeanors. His departure would allow Swallow to avoid any effort by a special counsel to seek his removal for multiple violations of election law. It also could bring to a close a months-long fact-finding investigation by the state House that could be laying the groundwork for his potential impeachment.

Wisconsin – Report: Investigation targets Scott Walker recall campaign, political groups

Chippewa Herald – Dee Hall | Published: 11/18/2013

Wisconsin Gov. Scott Walker’s campaign and more than two dozen conservative groups were recently subpoenaed by a special prosecutor, according to the editorial page of The Wall Street Journal. Wisconsin Democracy Campaign Executive Director Mike McCabe said based on the report, the investigation appears to be zeroing in on whether issue ad groups illegally coordinated with campaigns during the effort to recall Walker and legislative leaders.

National:

Initiative Spending Booms Past $1 Billion as Corporations Sponsor Their Own Proposals

Washington Post – Reid Wilson | Published: 11/7/2013

The initiative process, originally aimed at giving citizens the chance to break industry’s hold on state Legislatures, is increasingly becoming the domain of corporations and wealthy individuals who advance new laws for their own advantage, bypassing reluctant lawmakers and spending millions of dollars along the way. More than $1 billion has been spent in the past 18 months on ballot initiatives in just 11 states.

Federal:

FEC Poised to Allow Bitcoin Campaign Donations

Politico – Byron Tau | Published: 11/7/2013

A draft proposal from the FEC would allow campaigns to accept, but not spend, the digital currency Bitcoin. According to the proposal, the currency will count as an in-kind contribution to a campaign, like a stock or bond. The agency will not consider them currency.

Pro-Democratic Super PACs Outspend Conservatives

USA Today – Fredreka Schouten | Published: 11/12/2013

Liberal super PACs have spent $10.8 million on federal races this year, twice as much as conservative super PACs. Much of the money has flowed to a handful of elections to fill congressional vacancies. Liberal money also makes up 70 percent of the election-related federal spending by so-called dark money groups – politically active non-profits that do not have to disclose the sources of their money.

From the States and Municipalities:

California – FBI Capitol Sting Shines Light on Latino Caucus

Sacramento Bee – Laurel Rosenhall | Published: 11/10/2013

The details of the most recent leadership fight at the California Legislature’s Latino Caucus caught the attention of FBI agents investigating one caucus member, state Sen. Ron Calderon, for allegedly taking bribes. The emerging case has exposed caucus decisions to public view just as the group’s influence is peaking. The 25 members constitute more than a fifth of the Legislature, control hundreds of thousands of dollars in campaign funds, and wield influence that affects millions of Californians.

Florida – Sweetwater Mayor, Lobbyist Plead Guilty

Miami Herald – Jay Weaver | Published: 11/13/2013

Suspended Sweetwater Mayor Manuel Maroño and lobbyist Jorge Forte pleaded guilty to charges of conspiring to commit honest services fraud. Two others facing similar charges resulting from the same FBI sting operation are former Miami Lakes Mayor Michael Pizzi and lobbyist Richard Candia. The two corruption cases were remarkable even by South Florida’s standards as the crackdown snared two mayors and two lobbyists on the same day.

Georgia – Ga. Governor Suspends Indicted Lawmaker Accused of Illegally Claiming Expense Pay

Columbus Republic – Kate Brumback (Associated Press) | Published: 11/13/2013

Georgia Gov. Nathan Deal suspended state Sen. Don Balfour from office. A review committee recommended the action after a grand jury indicted Balfour on felony charges of illegally claiming legislative expense pay and double-billing the state and his private employer for some expenses. He previously agreed to pay a $5,000 fine issued by the Senate Ethics Committee for accepting pay for in-state work and travel on days when he was elsewhere.

Illinois – Rahm Emanuel to Propose Ordinance Forcing Contractors to Report Corruption

Chicago Sun Times – Fran Spielman | Published: 11/12/2013

Mayor Rahm Emanuel proposed a measure that would require city contractors to immediately report knowledge of corruption to Chicago’s inspector general or risk losing their contract. Emanuel’s office said the measure, if approved, would be incorporated into all future city contracts.

Illinois – Rauner’s $500,000 Donation to Lift Fundraising Limits in Gov. Race

Chicago Sun Times – Natasha Korecki and Dave McKinney | Published: 11/13/2013

Illinois gubernatorial candidate Bruce Rauner is adding $500,000 of his own money to his campaign, an amount that will trigger a provision allowing his opponents to raise unlimited amounts of cash. Under the law, candidates can only accept contributions of up to $5,300 from individuals and $52,600 from PACs. But those caps are lifted if any statewide candidate or member of the candidate’s immediate family donates or loans more than $250,000 to his or her campaign during the 12 months prior to an election.

Louisiana – Louisiana Ethics Board’s Focus on Small Offenses Lets Larger Violations Go Unnoticed, Observers Say

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/12/2013

Critics say the Louisiana Board of Ethics spends too much of its time going after candidates who file late, essentially ignoring more serious violations. Board of Ethics Administrator Kathleen Allen said her agency does not have enough personnel or a legal mandate to regularly audit even a small percentage of the thousands of campaign finance reports filed every year.

Massachusetts – Campaign Bill Would Order Fast Disclosure of Donors

Boston Globe – Michael Levenson | Published: 11/12/2013

Outside political committees pumped nearly $4 million into the Boston mayoral election this year, most of it to help elect Martin Walsh. But current law does not require those groups to reveal their donors until January. Secretary of State William Galvin and several lawmakers are preparing legislation that would require outside groups to disclose their donors in real time.

Minnesota – Minnesota Campaign Finance Regulators’ Database Isn’t Adding Up

Minneapolis Star Tribune – Glenn Howatt and Rachel Stassen-Berger | Published: 11/9/2013

An analysis by the Minneapolis Star Tribune shows online data from the Minnesota Campaign Finance and Public Disclosure Board are rife with mistakes, leading to errors that total as much as $20 million over the past decade. The flaws are enough to hamper any comprehensive attempt to examine the flow of political money in the state, at a time when that spending has soared to record heights.

New York – NY Democratic Committee’s Pro-Cuomo Ads Questioned as Skirting Lobbying Law, Public Disclosure

Columbus Republic; Associated Press –   | Published: 11/14/2013

Watchdogs contend television ads by the state Democratic Committee that urge residents to contact lawmakers in support of Gov. Andrew Cuomo’s ethics and jobs legislation violate New York’s lobbying law. The law requires those seeking to influence legislators be registered as lobbyists so they are publicly identified and disclose their funding and spending. Political parties and committees have long believed they were exempt.

Pennsylvania – Lobbyist Penalty Reforms Pass Pa. House

WHTM – Myles Snyder | Published: 11/13/2013

The Pennsylvania House unanimously approved a bill that would increase penalties for lobbyists who break the law. House Bill 744, which now moves to the Senate, would raise the maximum fine the state Ethics Commission can impose from $2,000 to $10,000, and it would up the current five-year ban on lobbying to 10 years, among other provisions.

Vermont – Democratic PAC Must Pay $30,000 Penalty

Burlington Free Press – Nancy Remsen | Published: 11/13/2013

Green Mountain Future, a PAC created by the Democratic Governors Association, will pay the state of Vermont a $20,000 civil penalty for not including its address on its website or television ads against Republican gubernatorial candidate Brian Dubie during the 2010 campaign. The group also must pay $10,000 for not registering as a PAC or filing campaign finance reports.

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.

National:

G.O.P. Weighs Limiting Clout of Right Wing

New York Times – Jeremy Peters and Jonathan Martin | Published: 11/7/2013

Mainstream Republican Party leaders complain that more ideologically-driven conservatives are damaging the GOP with tactics like the government shutdown. They are pushing their party to rethink how it chooses nominees and advocating changes they say would result in the selection of less extreme candidates.

Federal:

Third Navy Official Arrested in Bribery Probe

Washington Post – Craig Whitlock | Published: 11/7/2013

A third U.S. Navy official, Commander Jose Sanchez, was charged with receiving bribes, including cash and prostitutes, from a contractor who provides port services for American ships in Southeast Asia. Another commander and a senior investigator for the Naval Criminal Investigative Service were arrested in September, likewise on charges of providing inside information to Glenn Defense Marine in exchange for favors.

From the States and Municipalities:

Arizona – Attorney Asks AZ Supreme Court to Reinstate Increased Campaign Donations

East Valley Tribune – Howard Fischer (Capitol News Service) | Published: 11/4/2013

Arizona’s Republican legislative leaders are asking the state Supreme Court to allow higher campaign contribution limits to be reinstated, citing confusion among candidates and donors. The filing is the latest in a legal volley over House Bill 2593, which raised contribution limits nearly 10-fold for candidates in all offices, from school board to governor.

California – California Donor Disclosure Case Exposes How Nonprofits Can Play in Politics

Washington Post – Matea Gold and Tom Hamburger | Published: 11/4/2013

New revelations in California provide a glimpse at one national network of nonprofit groups that helped move $15 million into ballot-initiative campaigns last fall while working hide the identities of their donors. Two conservative nonprofits were together fined a record $1 million, while two political committees were ordered to repay the state for $15 million in donations they received.

California – San Diego City Attorney Maneuvered to Force Filner from Office

Los Angeles Times – Tony Perry | Published: 11/3/2013

For six weeks, San Diego City Attorney Jan Goldsmith maneuvered to force then-Mayor Bob Filner out of office by squeezing him financially, bluffing him about state law, embarrassing him by releasing documents showing the anger of his staff, and threatening to force a trial on his alleged misuse of public funds. On the eve of a court hearing, Filner finally resigned.

Connecticut – State Parties Unable to Wean Themselves off Special Interest Money

The News Times – Neil Vigdor | Published: 11/2/2013

A loophole in Connecticut’s campaign finance law allows the state’s major political parties to accept money from contractors and lobbyists. It has drawn scrutiny since a California fundraising trip by Gov. Dannel Malloy, who is the subject of a complaint filed by the state Republican Party with the Election Enforcement Commission.

Florida – Lawmakers-Turned-Lobbyists Help Tip Scales for Large Lobbying Firms

St. Augustine Record – Matt Dixon (Morris News Services) | Published: 11/4/2013

Florida’s lobbying corps includes former governors, agency heads, House and Senate leaders, and lawmakers and executive branch officials. Opponents say the practice amounts to elected officials and agency staff using taxpayer-funded jobs to later cash in on high-paying lobbying positions. Lobbying firms say former insiders are needed to help clients navigate a complex state government.

Florida – Tallahassee Lobbyists Won’t Be Audited until 2015

Orlano Sentinel – Aaron Deslatte | Published: 11/4/2013

A Florida legislative committee adopted rules for the long-delayed auditing of lobbyists’ financial reports. Sen. Joe Abruzzo said no reviews will be done next year but auditors will begin studying the 2014 reports in 2015. The draft guidelines allow for lobbying firms to keep some documentation confidential, but also will allow lawmakers critical of the mandate to repeal it during the next legislative session.

Kentucky – Richie Farmer’s Sister Gets Five Years’ Probation

Louisville Courier-Journal – Mike Wynn | Published: 11/1/2013

Rhonda Monroe, the sister of former Kentucky Agriculture Commissioner Richie Farmer, received five years’ probation for her role in a campaign finance scheme that allowed her brother to take money from his 2007 re-election fund. Monroe was accused of using her position as assistant executive director of the state Registry of Election Finance to help Farmer pocket leftover campaign cash with phony expense claims.

Louisiana – Louisiana’s Top 400 Campaign Donors Get Around Legal Limits to Magnify Political Influence

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/6/2013

Searching the mountain of state and local records, reporters identified hundreds of donors who gave from tens of thousands of dollars to more than $1 million to campaigns across Louisiana in the four years that ended in 2012. The journalists said the records show wealthy special interests and businesses are able to magnify their influence through loopholes, lax enforcement, and weak penalties to take advantage of the system.

Nevada – Nevada Judge Dismisses Suit against AFP

San Francisco Chronicle – Sandra Chereb (Associated Press) | Published: 11/6/2013

A District Court judge ruled Americans for Prosperity was not required to register with the state or file contribution reports as argued in the civil lawsuit filed by Nevada Secretary of State Ross Miller. The group is funded by conservative billionaires Charles and David Koch.

New York – New York City Takes Left Turn

Wall Street Journal – Sophia Hollander | Published: 11/6/2013

Political analysts say the election of Democrat Bill de Blasio as mayor of New York City could become the biggest test yet of a recent revival of liberalism in American political life that is occurring in urban areas. In 2000, Republicans led five of the nation’s largest dozen cities. By the end of 2012, they no longer led any.

Oklahoma – Oklahoma Lawmakers Question Conduct after Convictions

Seattle Post-Intelligencer – Tim Talley (Associated Press) | Published: 11/2/2013

Last year, former Oklahoma Senate President Pro Tem Mike Morgan was convicted of taking a $12,000 bribe in exchange for his influence on legislation. This year, state Rep. Randy Terrill was convicted of offering a legislative colleague a state job in exchange for her promise not to seek re-election. Lawmakers are considering whether the way they conduct the people’s business and the multiple prosecutions will chill legislative debate and action.

South Carolina – State House for Sale: Big businesses pay off in jobs, political contributions

The State – Jeff Wilkinson | Published: 11/2/2013

Scores of companies have donated to the campaigns of individual South Carolina candidates in a melding of corporate money and public policy that is banned in 21 states and in federal elections. Corporate officials say those contributions are not an effort to buy legislative votes on a particular issue. Watchdogs maintain corporate donations are just the tip of the iceberg in a political system that favors big business over others.

Texas – Candidates to Lead Texas Accept Meals, Gifts, More from Lobbyists

Dallas Morning News – Christy Hoppe | Published: 11/2/2013

All of the major candidates for governor and lieutenant governor in Texas have, to varying degrees, kept company with lobbyists, show dozens of disclosure reports examined by The Dallas Morning News. In the last five years, they have received tens of thousands of dollars worth of meals, gifts, and help holding campaign fundraisers, all from representatives of companies and industries with major business before the state.

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.

Federal:

Michelle Obama Policy Initiatives Are a Big Deal for Big Business

Politico – Byron Tau and Helena Bottemiller Evich | Published: 10/30/2013

First lady Michelle Obama’s two signature policy initiatives, the Let’s Move! childhood obesity effort and the veteran-focused Joining Forces, have earned her bipartisan praise. Those efforts have been developed in close cooperation with some of K Street and corporate America’s biggest players that stand to benefit from the exposure, public goodwill generated from being involved in a public health or charitable effort, or the policy itself.

From the States and Municipalities:

California – California State Sen. Ron Calderon Accepted $88,000 in Bribes, FBI Affidavit Alleges

Sacramento Bee – Laurel Rosenhall | Published: 10/30/2013

California Sen. Ron Calderon allegedly accepted about $88,000 in bribes from an undercover FBI agent during an elaborate sting operation. An affidavit, filed as the FBI sought a search warrant for Calderon’s office, alleges he worked with interest groups in a “pay-to-play” fashion, accepting money in exchange for promises to carry or amend legislation to their benefit.

California – Critics Howl over Lobbyist Walking Governor’s Dog

San Francisco Chronicle – Carla Manucci | Published: 10/24/2013

Some are questioning whether Jennifer Fearing, senior state director for the Humane Society of the United States, has turned her role as regular walker of California Gov. Jerry Brown’s dog into an effective way to lobby the state’s chief executive on animal rights issues. Fearing had a perfect record this legislative season in getting bills signed by Brown, placing her in the ranks of Sacramento’s most effective lobbyists.

California – L.A. Moves to Boost Limits on Gifts to Lawmakers

Los Angeles Times – Steve Zahniser | Published: 10/25/2013

The Los Angeles Ethics Commission sent the city council its recommendation for new and more stringent limits on gifts to the city officials, part of a much larger package of rule changes. But when the council took up the proposal recently, they sought an increase, not a decrease, in the size of allowable gifts from bidders, contractors, and others with a financial stake in a city decision.

Colorado – Group Tests New Tactic with Ethics Complaint against Gov. Hickenlooper

Denver Post – Lynn Bartels | Published: 10/31/2013

Some groups are using ethics complaints to impugn the integrity of candidates in Colorado, even when the complaint is found to be without merit. The move has attracted bipartisan criticism.

Florida – Lobbyist Watch: Superlobbyist Platt’s “Rules for Successful Lobbying”

South Florida Sentinel – Brittany Wallman | Published: 10/29/2013

Broward County lobbyist George Platt has come up with guidelines for being successful in the influence industry. “Somehow the list grows as time passes … [there are] too many who lack a moral compass trying to become lobbyists; unlike some professions, there is no set of qualifications for entry,” said Platt.

Iowa – Big Campaign Group Gets Involved in Tiny Iowa Race

Business Week – Ryan Foley (Associated Press) | Published: 10/31/2013

Americans for Prosperity, the organization backed by the billionaire Koch brothers, has jumped into the municipal election in Coralville, Iowa and turned it into a referendum on government spending and borrowing. Residents of the town, with a population of 19,000, say they have never seen such an outside effort in a local vote, let alone by a conservative group in the state’s most Democratic county.

Iowa – Iowa Senate Ethics Rule Protects the ‘First-in-the-Nation’ Franchise

Quad City Times – James Lynch | Published: 10/24/2013

State Senate Ethics Committee Chairperson Wally Horn said the chamber’s rule prohibiting senators from being paid staffers of campaigns and PACs is there to protect the franchise of Iowa’s first-in-the-nation presidential caucuses. Other states that closely follow Iowa in the nomination process do not seem to share Horn’s concern, however.

Nevada

Embattled Nevada Assemblyman Jim Wheeler Urged to Resign after Slavery Comment

Reno Gazette-Journal – Sandra Chereb (Associated Press) | Published: 10/30/2013

A YouTube video surfaced of an event at which Nevada Assemblyperson Jim Wheeler said he would vote to allow slavery if that was the desire of his constituents. He said he believes it is his job to represent those who elected him regardless of his own beliefs. “If that’s what they wanted, I’d have to hold my nose … they’d probably have to hold a gun to my head, but yeah,” said Wheeler.

Nevada – Public Policy Maker or Private Lobbyist? 10 State Officials Play Dual Roles

Las Vegas Sun – Andrew Doughman | Published: 10/27/2013

Disclosure reports filed with the Nevada Commission on Ethics detail how legislators and members of state boards and commissions often get paid to do business before state agencies, boards, and commissions. Their elected or appointed positions likely enable them to build relationships and gain expertise useful in their private enterprise, a fact recognized by lawmakers when they passed a disclosure law in 1991.

New Mexico – Report Examines NM Lobbyists’ Largesse

Albuquerque Journal – Deborah Baker | Published: 10/31/2013

A report from New Mexico Common Cause said spending on lobbying “plays an influential role” in state lawmakers’ votes. Common Cause had several recommendations for regulating lobbyists, including requiring more specific information on disclosure reports and limits on their cumulative campaign donations.

New York – Turmoil in Ethics Hiring

Albany Times Union – James Odato | Published: 10/29/2013

The Joint Commission on Public Ethics hired Letizia Tagliafierro as its new executive director during a closed door meeting. In the brief public part of the meeting, commission member Ellen Yaroshefsky proposed what she called an independent search for an executive director. Yaroshefsky later resigned from the panel.

Oklahoma – Ex-Okla. Lawmaker Guilty in Bribery Trial

BusinessWeek – Tim Talley (Associated Press) | Published: 10/30/2013

Former Oklahoma Rep. Randy Terrill has been convicted of bribery. Prosecutors alleged Terrill offered to put former Democratic Sen. Debbe Leftwich in an $80,000-a-year job at the state medical examiner’s office if she would agree to not seek re-election in 2010 so a Republican, Rep. Mike Christian, could run for her open seat.

South Dakota – Power Shift Sought in Pierre: Governor’s office has been dominating legislative process

Sioux Fall Argus Leader – David Montgomery | Published: 10/30/2013

South Dakota legislative have begun looking for ways to strengthen their voice in state policy debates. Compared to the executive branch, with a full-time governor and his or her year-round staff, along with myriad state employees, South Dakota’s part-time citizen Legislature has fewer resources, less information, and less time to tackle problems.

Virginia – McAuliffe’s Wealth Could Create Conflicts of Interest

The Virginian-Pilot – Julian Walker | Published: 10/31/2013

If Terry McAuliffe becomes Virginia’s next governor, his business interests could trigger conflicts-of-interest. His campaign says his investments would go into a blind trust, but Republicans remain skeptical, given their view of McAuliffe’s history as a political financier with interests they say could intersect with a governor’s duties.

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.

National:

Lobbying Bonanza as Firms Try to Influence European Union

New York Times – Eric Lipton Danny Hakim | Published: 10/18/2013

As the European Union has emerged as a regulatory superpower, its policies have become ever more important to corporations operating across borders. In turn, the lobbying business in Brussels has become larger and more competitive, rivaled only by Washington, D.C. Some say American law firms are undercutting efforts to bring more transparency to lobbying in the Belgian capital, citing lawyer-client confidentiality to evade a government-backed but voluntary disclosure effort.

State Pro-Business Organizations Are Publicly Funded, but Privately Controlled

The Center for Public Integrity – Nicholas Kusnetz | Published: 10/23/2013

Some states have given control over corporate tax incentives to public-private partnerships that are often run by the states’ most influential businesspeople. Supporters say these partnerships are more nimble than government bureaucracies and are insulated from electoral politics. But much of the spending remains secret. Even most public agencies do not disclose the recipients of all the incentives because of tax privacy laws.

Federal:

Cassidy Lobby Shop Goes Social

Washington Post – Catherine Ho | Published: 10/18/2013

With the lobbying business at a standstill on K Street, even big firms such as Cassidy & Associates have to embrace new ways of reaching policymakers and clients to protect their bottom lines. Cassidy has been trying to attract visitors to its Web site, which the firm has spent the last year overhauling to attract more potential clients through Twitter, Facebook, LinkedIn, and YouTube.

From the States and Municipalities:

Alabama – Alabama Considers Creating Election Commission

San Francisco Chronicle – Philip Rawls (Associated Press) | Published: 10/19/2013

Candidates have to report their contributions and expenditures to the Alabama secretary of state, but little is being done to make sure the reports are filed accurately. Some lawmakers said the solution could be to create a small state agency similar to the Federal Elections Commission.

California – FPPC Fines Arizona Group $1 Million for Campaign Finance Violations

Sacramento Bee – Laurel Rosenhall | Published: 10/24/2013

The California Fair Political Practices Commission levied a combined $1 million fine against Americans for Responsible Leadership and the Center to Protect Patient Rights for illegally funneling millions of dollars into a pair of ballot measure campaigns in 2012.

California – Riverside County Supervisors to Amend Campaign Finance Rules

Desert Sun; City News Service –   | Published: 10/22/2013

The Riverside County Board of Supervisors amended campaign finance regulations so candidates or PACs will, beginning January 1, 2014, have to electronically post details of a contribution within 10 days if the amount meets or exceeds $1,000. The revision affects candidates for assessor-clerk-recorder, auditor-controller, district attorney, judge, sheriff, supervisor, superintendent of schools, and treasurer-tax collector, as well as sponsors of ballot measures that are countywide in scope.

District of Columbia – Campaign Finance Reform Will Get D.C. Council Vote Next Month

Washington Post – Mike DeBonis | Published: 10/22/2013

The District of Columbia Council will vote on a package of campaign finance reforms as soon as November 5. The changes would restrict the ability of different companies owned by the same people to donate to the same candidate, require lobbyists to disclose their bundling of campaign contributions, and require political committees to report donations of $10,000 or more they believe to have been bundled, among other provisions.

Georgia – Commissioner: State auditor to handle ethics probe

Columbus Republic – Christina Cassidy (Associated Press) | Published: 10/22/2013

The Georgia Department of Audits and Accounts will investigate concerns surrounding the state ethics commission and its handling of complaints involving Gov. Nathan Deal. State Auditor Greg Griffin was initially appointed by the governor since the job became open outside of a legislative session. That connection to Deal drew criticism from Senate Minority Leader Steve Henson, who called the decision a “travesty of justice,” and said a special prosecutor would have been a better option.

Hawaii – Ethics Probe into Honolulu Mayor Sparks Talk of Reform

Honolulu Civil Beat – Nick Grube | Published: 10/18/2013

Ethical questions have been raised about a luau to celebrate the inauguration of Honolulu Mayor Kirk Caldwell, including whether it was a vehicle used by city contractors and lobbyists to curry favor with the new mayor. It has also opened up the debate over whether Honolulu’s ethics laws need to be strengthened to close any loopholes regarding gift-giving.

Michigan – Activists ‘Make it Rain’ in Michigan House, Drop Fake Million Dollar Bills on Lawmakers

MLive.com – Jonathan Oosting | Published: 10/23/2013

Anti-corruption protesters shouted from the Michigan House gallery as they showered state lawmakers with fake million dollar bills. The national group Represent Us says Michigan has one of the worst records of government corruption in the nation. It pulled a similar stunt in the New York Senate this June.

Montana – Montana Legislature Committee Hears Divide over Political Practices Job

The Missoulian – Charles Johnson | Published: 10/22/2013

The Legislature’s State Administration and Veterans’ Affairs Committee is studying Montana’s political practices office and looking at how other states regulate of campaign finances, ethics, and lobbyist and disclosure. Any recommendations will go to the 2015 Legislature for consideration. Those testifying before the committee offered divergent opinions about the role of the office and how it should be structured.

New York – Group Supporting Lhota Can Accept Unlimited Donations, Court Says

New York Times – Thomas Kaplan | Published: 10/24/2013

A three-judge panel of the U.S. Court of Appeals for the Second Circuit ruled a political committee created to support New York City mayoral candidate Joseph Lhota can accept contributions above the $150,000 annual limit for individuals set by state law. The judges said the state’s cap on donations to independent political groups was probably unconstitutional.

New York – New Bill Would Require Businesses Seeking State Contracts to Detail Donations to Governor

New York Daily News – Ken Lovett | Published: 10/22/2013

A bill introduced recently in the New York Legislature would require businesses seeking state agency contracts to make public a list of all campaign contributions made to the governor and others in the executive branch. Before any contract could be awarded, the companies would have to detail all donations from the business, its subsidiaries, key employees, and their spouses over the preceding 18 month period.

Texas – 5th Circ. Axes Texas Ban on Corporate PAC Donations

Law360.com – Jeremy Heallen | Published: 10/16/2013

The Fifth U.S. Circuit Court of Appeals ruled Texas cannot bar PACs from soliciting corporate donations, making it the fourth Circuit Court to uphold indirect corporate political contributions since the U.S. Supreme Court’s Citizens United ruling. Texans for Free Enterprise, a PAC that does not contribute directly to campaigns but solicits donations to run ads supporting or opposing candidates, had challenged the law.

Washington – Wash. AG Still Seeking Penalty against Food Industry Group That Didn’t Disclose Donors

Columbus Republic – Mike Baker (Associated Press) | Published: 10/22/2013

Washington Attorney General Bob Ferguson will move ahead with a lawsuit filed against the Grocery Manufacturers Association. Ferguson said he will still seek penalties from the group, which recently identified donors who contributed money to oppose a food labeling initiative. The attorney general said the case involved concealing a record-setting amount of donations and there must be sanctions for violating the law.

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.

Federal:

Business Groups Stand by Boehner, Plot against Tea Party

Washington Post – Jia Lynn Yang and Tom Hamburger | Published: 10/17/2013

Rather than revisit their strategy of supporting Republicans after the stand-off that nearly drove the country to a debt default, influential organizations such as the U.S. Chamber of Commerce are standing behind U.S. House Speaker John Boehner. More importantly, Boehner’s friends in the business community are getting ready to take sides in a few GOP primary races against tea party candidates in Michigan, Idaho, and Alabama who could cause him more trouble.

Lobbyists’ Lobbying Group Wants a New Name – One That Doesn’t Mention Lobbying

Washington Post – Holly Yeager | Published: 10/15/2013

The board of directors for the American League of Lobbyists has made its choice for the organization’s new name: the Association of Government Relations Professionals. The group’s bylaws require two-thirds approval by its members before the name can be changed. There have been surveys and other research revealing a majority of members no longer identify themselves only as lobbyists.

From the States and Municipalities:

Arizona – Court Blocks New Arizona Campaign Finance Law; Opens Door for Candidates to Receive More Money

East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 10/15/2013

The Arizona Court of Appeals issued a preliminary injunction against the state’s higher campaign contribution limits. The order directs Secretary of State Ken Bennett not to enforce the law. The ruling makes it likely the state will turn to the Arizona Supreme Court to review the case.

Arizona – Ex-Phoenix Lobbyist Indicted over Contributions

San Francisco Chronicle; Associated Press –   | Published: 10/10/2013

Gary Husk, a once influential lobbyist in Phoenix whose key clients included the Fiesta Bowl, has been charged with eight felonies for using his firm’s money to reimburse staff after directing them to make specific campaign contributions. The donations went to high-profile politicians with whom Husk sought access and influence, including Arizona Gov. Jan Brewer.

California – Bob Filner, Former San Diego Mayor, Pleads Guilty to Criminal Charges

New York Times – Rob Davis and Adam Nagourney | Published: 10/15/2013

Former San Diego Mayor Bob Filner pleaded guilty to three criminal counts related to the sexual harassment allegations that drove him from office after a summer of scandal. Filner pleaded guilty to one criminal count of false imprisonment by violence, fraud, menace, and deceit, and two misdemeanor counts of battery. Sentencing was set for December 9, and documents indicate he will get three years of probation and no prison time.

Colorado – Colo. Pot Advocates File Unusual Campaign Finance Report

CBS News; Associated Press –   | Published: 10/17/2013

No Over Taxation, a group that had distributed free marijuana cigarettes at a rally opposing possible new taxes in Colorado, filed a disclosure report saying the joints were worth $1,250, and were paid for by a lawyer funding its campaign. Colorado Ethics Watch had filed a complaint alleging the marijuana was an in-kind campaign contribution and the anti-tax group had failed to initially report it.

Georgia – FBI Contacts Attorney in Ethics Case

Augusta Chronicle – Christina Cassidy (Associated Press) | Published: 10/10/2013

FBI agents have questioned Georgia ethics commission attorney Elisabeth Murray-Obertein, who raised concerns about the panel’s investigation into Gov. Nathan Deal. Murray-Obertein is a key figure in the allegations lodged in a pair of whistle-blower lawsuits accusing commission Executive Secretary Holly LaBerge of bragging about her relationship with Deal and saying he “owed her” after the agency dismissed the most serious campaign finance complaints raised in its investigation of the governor.

Hawaii – Circuit Hears Hawaii Campaign Finance Case

Courthouse News Service – Tim Hull | Published: 10/14/2013

A-1 A-Lectrician, Inc. sued the Hawaii Campaign Spending Commission in 2010, arguing the state’s non-candidate committee donation caps, advertising definition, disclaimer requirements, and ban on government contractors donating to candidates were all unconstitutional. The case is now before a panel of the Ninth U.S. Circuit Court of Appeals, which hinted it may delay a ruling until the U.S. Supreme Court decides a similar case.

Michigan – Bobby Ferguson Sentenced to Serve 21 Years in Federal Prison for Corruption

Detroit Free Press – Jim Schaefer, Tammy Staples Battaglia, and Eric Lawrence | Published: 10/11/2013

Bobby Ferguson, the friend and favorite construction contractor of former Detroit Mayor Kwame Kilpatrick, was sentenced to 21 years in federal prison. Ferguson was convicted of nine felonies, including racketeering and bribery.  He was accused of illegally securing $70 million in city contracts through his friendship with the ex-mayor, who was sentenced to 28 years in prison for his role in the extortion and racketeering scheme.

Montana – State of Montana Slaps Conservative ‘Dark Money’ Groups for Campaign Violations

The Missoulian – Mike Dennison | Published: 10/17/2013

Montana Commissioner of Political Practices Jonathan Motl said he found sufficient evidence to show Western Tradition Partnership violated state campaign finance law in a 2010 Republican House primary race. Motl found the “dark-money” group, now known as American Tradition Partnership, illegally coordinated campaign expenditures with candidate Dan Kennedy.

New York – Judge Rejects Bid by PAC to Raise Large Sums for Lhota

Wall Street Journal – Andrew Grossman | Published: 10/17/2013

U.S. District Court Judge Paul Crotty rejected a request by New York Progress and Protection PAC to overturn a state law that prohibits individuals from giving more than $150,000 each year to campaigns and political committees. Crotty said granting the injunction would be disruptive because it would come too close to the November 5 election.

Pennsylvania – Philly Ethics Board Proposal Allows $200 Limit on Gifts

Philadelphia Inquirer – Claudia Vargas | Published: 10/17/2013

The Philadelphia Board of Ethics has drafted a list of regulations that are supposed to better explain what is allowed under the current code for “gifts, loans, and favors to city personnel.” For example, the proposal would allow city officers and employees to accept gifts of up to $200 in value per year from any single source. A hearing on the proposed regulations is scheduled for November 20.

Virginia – Star Scientific Chief Thought McDonnell Was Helping Firm Get State Funding

Washington Post – Rosalind Helderman and Carol Leoning | Published: 10/11/2013

Star Scientific Chief Executive Officer Jonnie Williams Sr. has told federal investigators he believed Virginia Gov. Robert McDonnell was helping his company get funding from the state’s tobacco commission at the same time that Williams was giving money and gifts to the governor and his family. Under federal law, it can be illegal for elected officials to agree to take official actions in exchange for gifts or money, even if they do not ultimately follow through on their promises or have the power to do so.

Washington – Washington State Sues Lobbyists over Campaign against GMO Labeling

Reuters – Carey Gillam | Published: 10/16/2013

The state of Washington filed a lawsuit alleging the Grocery Manufacturers Association illegally collected and spent more than $7 million while shielding the identity of its donors in an effort to oppose Ballot Initiative 522, which would require labeling of genetically modified foods. The attorney general’s office is asking the court to order the group to immediately comply with state disclosure laws. It also said it would seek civil penalties.

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.

Federal:

A Federal Budget Crisis Months in the Planning

New York Times – Sheryl Gay Stolberg and Mike McIntire | Published: 10/5/2013

A New York Times article detailed a plan among conservative activists to derail the Affordable Care Act. The outside groups believed the GOP could stop the health care overhaul if conservative lawmakers were willing to push fellow Republicans into cutting off financing for the entire federal government. The report said the billionaire Koch brothers, Charles and David, have been deeply involved with financing the overall effort.

Supreme Court Skeptical of Limits on Federal Campaign Contributions

Washington Post – Robert Barnes | Published: 10/8/2013

The U.S. Supreme Court seemed prepared to strike down a part of federal campaign finance law left intact by its decision in Citizens United in 2010: overall limits on direct contributions from individuals to candidates. The justices seemed to divide along familiar ideological lines, and they expressed different understandings of the role of money and free speech in American politics.

From the States and Municipalities:

Arizona – Portion of Campaign Finance Law Overturned

Arizona Republic – Edward Gately | Published: 10/4/2013

U.S. District Court Judge James Teilborg ruled the part of Arizona’s campaign finance law that defines political committees is unconstitutional. But the law will remain in effect pending an injunction or until lawmakers can address the problems. “We will likely file an injunction to basically put everything on hold until the Legislature can convene in January,” said Stephanie Grisham, a spokesperson for the state attorney general’s office.

California – Assemblyman Offers to Suit up Campaign Donors

Sacramento Bee – Laurel Rosenhall | Published: 10/8/2013

California Assemblyperson Henry Perea is raising campaign money by offering donors a custom suit in exchange for a $2,000 contribution. A number of lobbyists said the fundraiser puts participants in an ethical quandary, leaving them with a valuable gift, while some women said it is excluding them by only offering suits for men.

California – California Strategies Walks Line between Lobbying and Public Affairs

Sacramento Bee – Laurel Rosenhall | Published: 10/6/2013

California Strategies is not the only public affairs firm in Sacramento that offers clients a variety of services requiring a careful dance along the line that separates lobbying from less regulated forms of advocacy. But it has been a target of competitors who say the firm’s approach creates an uneven playing field – it has a long list of partners who have deep connections inside government but do not register as lobbyists.

Colorado – Complaint: Free weed
at rally not reported

Grand Junction Daily Sentinel – Charles Ashby | Published: 10/8/2013

No Over Taxation has given out free marijuana at rallies in Denver and Boulder to convince voters to oppose Proposition AA, a ballot measure that would impose taxes on recreational pot when it becomes available for sale in Colorado next year. Colorado Ethics Watch filed a complaint contending the donors that contributed the marijuana should have been identified in No Over Taxation’s campaign finance reports as providing in-kind donations, but were not.

Florida – Hays and Ring: Forget auditing lobbyists; repeal the law

Orlando Sentinel – Aaron Deslatte | Published: 10/7/2013

After media attention to lobbyists’ pay, Florida legislative leaders agreed to kick-start legally required audits of those paid to influence lawmakers and state officials. The Legislature’s joint auditing committee was told the random audits of some two-dozen firms could cost in excess of $1 million, sparking criticism from some on the panel.

Georgia – Ex-Ethics Commission Employee in Georgia Says Docs Altered

Chattanooga Times Free Press; Associated Press –   | Published: 10/9/2013

John Hair, a former Georgia ethics commission computer specialist, said he removed, changed, and condensed documents from the investigative file of complaints accusing Georgia Gov. Nathan Deal of misusing campaign funds in the 2010 election. Hair said he was fulfilling orders from commission Executive Secretary Holly LaBerge and her top aide, Lisa Dentler.

Massachusetts – Cardinal O’Malley Invites Lawmakers to a Get-Together

Boston Globe – Jim O’Sullivan and Lisa Wagsness | Published: 10/9/2013

Cardinal Sean O’Malley, the Roman Catholic archbishop of Boston, will meet with the Massachusetts lawmakers who represent cities and towns within the archdiocese in what one of his aides described as “relationship building.” The church does not command the presence on Beacon Hill that it did years ago, when it played a much more prominent role in society. Some lawmakers remain angry at what they viewed as overly aggressive lobbying techniques that church lobbyists and some priests used in opposing same-sex marriage

Michigan – Ex-Detroit Mayor Kwame Kilpatrick Sentenced to 28 Years in Prison for Corruption

Washington Post; Associated Press –   | Published: 10/10/2013

Former Detroit Mayor Kwame Kilpatrick was sentenced to 28 years in prison on his conviction for public corruption charges including bribery and extortion that prosecutors said exacerbated the city’s financial crisis. Kilpatrick spent lavishly at the helm of a conspiracy that damaged Detroit’s reputation and cost taxpayers millions of dollars, U.S. District Court Judge Nancy Edmunds said, adding that the sentence was intended to send a message that corruption would not be tolerated.

New York – Cuomo’s Office Is Said to Rein in Ethics Board He Created

New York Times – Jesse McKinley and Thomas Kaplan | Published: 10/8/2013

According to people familiar with the work of the Commission to Investigate Public Corruption, its effort is burdened by resistance from the New York Legislature, which has refused requests for information about lawmakers’ outside income, and by unexpected involvement by the governor’s office, which has leaned on the commission to limit the scope of its probes.

North Carolina – Plain-Clothes Officer Attended Moral Monday Planning Meetings

WRAL – Michael Biesecker (Associated Press) | Published: 10/8/2013

About 940 people were arrested at weekly “Moral Monday” rallies opposing Republican-backed policies at the North Carolina Legislature that protesters said damaged public education, voting rights, and working people. The Raleigh Police Department conducted undercover surveillance at meetings of the North Carolina chapter of the NACCP held to organize the mass protests.

South Carolina – State House for Sale: SC ethics law a muddled mess

The State – Adam Beam | Published: 10/5/2013

While South Carolina has strict rules on who can donate to political campaigns, and how much they can give, state law has little to say about how legislators can spend that money. And what it does say is in dispute. Critics say South Carolina needs to follow the lead of 26 other states and have one independent ethics commission set the rules for all candidates. But most lawmakers say that would violate the state constitution.

Texas – Red River Rivalry Fundraising a Growing Trend

Texas Tribune – David Maly | Published: 10/9/2013

The annual football game between the University of Texas and Oklahoma University is increasingly becoming a fundraising hotspot for lawmakers in both parties. Deborah Ingersoll, a lobbyist who has worked in Texas politics for more than 20 years, organizes an annual guide of legislative fundraising surrounding the game and said this is the biggest year she has seen.

Virginia – Reforming Va. Laws a Priority for Politicians

Richmond Times Dispatch – Olympia Meola and Jim Nolan | Published: 10/6/2013

Recognizing the public reaction to the scandal involving Gov. Robert McDonnell, both major party candidates to succeed him have proposed reforms to Virginia’s gift and disclosure laws. Majority Leader M. Kirkland Cox is leading a working group of House Republicans studying various reforms ahead of the legislative session. Cox said the changes could include more frequent reporting than the current annual filing, and synchronizing the reporting dates for elected officials and lobbyists.

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.

National:

State Watchdogs Band Together to Take on ‘Dark Money’

Washington Post – Reid Wilson | Published: 10/3/2013

The States’ Unified Network Center, a project from watchdog groups to share information on campaign finance legislation across the country, will begin as a Web presence to highlight proposed bills and standing law. It will also organize a database of nonprofit groups that spend money in state elections, in hopes of stitching together the state-by-state patchwork of campaign finance databases.

Federal:

Government Shutdown: Wall Street angry at tea party it has no influence over

Politico – MJ Lee | Published: 10/2/2013

Wall Street’s frustration over the current fiscal impasse is shared by the larger business community, which has tried to convince lawmakers the threat of shutting down the government or failing to raise the borrowing limit should not be used as negotiating ploys. But wealthy financial services executives and their lobbyists have little leverage against tea party lawmakers, who do not care for big banks and do not rely heavily on the industry for campaign money.

Not ‘Essential’: Shutdown would hit FEC hard

Center for Public Integrity – Dave Leventhal | Published: 9/30/2013

The FEC, unlike some agencies filled with employees deemed essential, will effectively shutter under a government shutdown. All but the agency’s active commissioners, who are furlough-proof political appointees, would ultimately stay home.

From the States and Municipalities:

California – Ex-Lobbyist Joins Councilman’s Staff and Questions Follow

Los Angeles Times – Robert Zahniser | Published: 9/26/2013

Robert Katherman, a longtime Los Angeles lobbyist, said since joining city Councilperson Curren Price’s staff, he has avoided decisions affecting clients at the advocacy firm he founded and put his wife in charge of. As long as that continues, state conflict-of-interest laws permit Price to act on proposals that benefit Katherman’s wife and her firm.

Georgia – Ethics Commission to Ask for Special Investigator

San Francisco Chronicle – Christina Cassidy (Associated Press) | Published: 9/30/2013

The Georgia ethics commission voted to request that a special assistant attorney general be appointed for an independent investigation to look into the circumstances surrounding two lawsuits against the agency. Former commission Executive Secretary Stacey Kalberman and her onetime deputy, Sharon Streicker, allege they were forced out for pressing an investigation into Gov. Nathan Deal’s 2010 campaign.

Georgia – State Senator Balfour Indicted on Charges Related to Expenses

Athens Banner-Herald – Ray Henry (Associated Press) | Published: 9/27/2013

A grand jury charged state Sen. Don Balfour with illegally claiming legislative expense pay. The indictment comes after a Georgia Bureau of Investigation probe into expense vouchers from his work at the General Assembly, where Balfour sought reimbursement for mileage and per diem expenses at the Capitol when lobbyist disclosure reports show he was out of state.

Illinois – Appeals Court Denies Quinn Bid to Keep Pay Freeze

San Francisco Chronicle – Sarah Burnett (Associated Press) | Published: 9/27/2013

A judge overruled Illinois Gov. Pat Quinn, who had suspended the salaries of state legislators, and ordered the lawmakers to receive back pay with interest. Quinn suspended the paychecks this summer, saying lawmakers had failed to resolve a financial crisis worsened by the ballooning cost of state pension plans. Leaders of the Legislature challenged his authority to suspend the pay.

Iowa – Iowa Lawmaker Resigns over Bachmann Payments

USA Today – Jason Noble and Jennifer Jacobs (Des Moines Register) | Published: 10/2/2013

Iowa Sen. Kent Sorenson resigned after a special investigator found it likely he violated ethics rules by taking money from PACs connected to former presidential candidate Michele Bachmann and then denying he had done so. The report contains the most detailed findings yet in a scandal that has swirled around Sorensen since he defected from the Bachmann campaign days before the 2012 Iowa caucuses to support Ron Paul.

Michigan – Corruption Alleged after Detroit Pension Deal

Detroit Free Press – Robert Snell | Published: 9/30/2013

Former Detroit Mayor Kwame Kilpatrick backed an investment deal that bankrolled a three-year spree of alleged corruption and helped push the city into bankruptcy. The deal cheated city retirees out of more than $84 million, led to criminal charges against six people, and compounded the impact of the money-losing Wall Street scheme, which could eventually cost Detroit more than $2.7 billion.

Minnesota – Emmer’s Internet Ad Could Prove Troublesome

Minneapolis Star Tribune – Jim Ragsdale and Jennifer Brooks | Published: 9/30/2013

A television ad featuring congressional candidate Tom Emmer vouching for a construction company may violate a federal law banning corporate contributions to candidates. Emmer appeared in an ad for Integrity Exteriors & Remodelers while noting his candidacy and standing by a banner spelling out his congressional ambitions. A YouTube posting for the ad said it had aired on a Twin Cities television station.

Mississippi – Hood Could Appeal Judge’s Ruling That Part of Miss. Campaign Finance Law Is Unconstitutional

Columbus Republic – Emily Wagster Pettus (Associated Press) | Published: 10/1/2013

U.S. District Court Judge Sharion Aycock ruled that part of Mississippi’s campaign finance law creates an unconstitutional burden for individuals or organizations that spend at least $200 to support or oppose a ballot initiative. State Attorney Jim Hood an appeal could be difficult because federal courts have not been amenable to states’ defense of their own campaign finance laws.

New York – Elections Officials Narrow Scope of Collection Effort

Albany Times Union – Casey Seiler | Published: 9/26/2013

The New York State Board of Elections had planned to send letters in September to numerous campaign treasurers with judgments against them and the banks that held their funds, informing them the committees’ assets were frozen until their fines had been settled. But only two such letters have been sent.

North Carolina – Voter ID Targeted in North Carolina

Wall Street Journal – Devlin Barrett | Published: 9/30/2013

The U.S. Justice Department filed a lawsuit challenging voting restrictions adopted by North Carolina, alleging they discriminate against minority voters. The suit challenges the state’s voter-identification requirement and limits on early voting. It also asks the court to require federal pre-approval for voting-law changes in the state.

West Virginia – Fishing Trip Underscores Close Ties between Suder, United Sportsmen

Milwaukee Journal Sentinel – Patrick Marley and Jason Stein | Published: 9/30/2013

Records show then-Wisconsin Assembly Majority Leader Scott Suder accepted an invitation for a fishing trip offered by the lobbyist for a self-described sportsmen group just days before an affiliate of the organization won a $500,000 state grant. Gov. Scott Walker rescinded the grant after reports the group misrepresented its nonprofit status and its president had been cited for shooting a black bear without the proper license.

West Virginia – W.Va. Judge Resigns, Pleads Guilty to Conspiracy

San Francisco Chronicle – John Raby (Associated Press) | Published: 10/2/2013

A West Virginia judge pleaded guilty to participating in a scheme to conceal alleged illegal drug use and election-law violations by a sheriff who was murdered earlier this year. As part of his plea agreement, prosecutors agreed to drop an earlier charge that Mingo County Circuit Court Judge Thornsbury misused his office on several occasions over five years to try to illegally imprison the husband of his former secretary after she ended an affair with him.

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.

National:

Manufacturing Arm to Advise on Lobbying Agencies, States

Politico – Byron Tau and Andrea Drusch | Published: 9/26/2013

The National Association of Manufacturers has established the Center for Legal Action to give its members a voice in legal debates at the federal, state, and local levels. The center is a response to gridlock in Washington, D.C. and reflects the fact that legal fights elsewhere play a major role in the development of rules and regulations.

Some Public Companies Are Divulging More Details about Their Political Contributions

Washington Post – Dina ElBoghdady | Published: 9/25/2013

Even as some groups fight efforts to make their donors public, a growing number of companies are coming forward on their own to disclose their contributions to trade associations and other nonprofit organizations that legally can keep their hidden, according to a study.

Federal:

Federal Election Commission Gets New Blood

The Center for Public Integrity – Dave Levinthal | Published: 9/23/2013

The U.S. Senate confirmed President Barack Obama’s two nominees to the FEC, giving the panel its first new members since the George W. Bush administration. Democrat Ann Ravel and Republican Lee Goodman were approved by unanimous consent in a brief voice vote. The appointments will restore the six-member commission to full strength.

From the States and Municipalities:

Arizona – Campaign Finance Law Throws Twist at Candidates

San Francisco Chronicle; Associated Press –   | Published: 9/23/2013

The Arizona secretary of state’s office said under a new law, candidates need to have separate campaign finance committees for the primary and general elections. Combined with a $2,000 limit on transfers between committees, the requirement means candidates may have to commit their funds to one election or the other without yet knowing what the political landscape will look like.

California – California Political Watchdog Sets Sights on Major Cases

Sacramento Bee – Christopher Cadelago | Published: 9/22/2013

The California Fair Political Practices Commission historically has pursued investigations based on formal complaints. But under the leadership of Chairperson Ann Ravel and her chief enforcer, Gary Winuk, the agency has become more proactive, significantly increasing the number of inquiries it initiates.

California – State’s New Rule: Campaigns must say when they pay for Web posts

Los Angeles Times – Patrick McGreevy | Published: 9/19/2013

Bloggers and others who are paid to post political messages online are subject to new disclosure rules under regulations approved by the California Fair Political Practices Commission. The agency acted out of concern the public might be deceived into thinking paid content on blogs that praises or criticizes a candidate is objective political commentary.

Florida – Lobbying Association Weighs into Gaetz Push to Start Auditing Their Pay

Orlando Sentinel – Aaron Deslatte | Published: 9/19/2013

As a legislative panel prepares to discuss auditing lobbyists’ compensation, the association that represents Florida’s lobbyists wants to make sure they have a say in the process. A letter signed by the Florida Professional Lobbyist Association’s board of directors asks to make recommendations to lawmakers on how to conduct the audits.

Georgia – Ethics Commission Head Received Pay Increases

Macon Telegraph; Associated Press –   | Published: 9/20/2013

The annual salary of the Georgia ethics commission’s executive secretary, Holly LaBerge, increased from $85,000 when she was hired in September 2011 to $100,000 by June 2013, despite the agency saying it had to cut costs. By comparison, LaBerge’s predecessor, Stacey Kalberman, quit after absorbing a 30 percent pay cut and later filed a lawsuit alleging she was punished for aggressively pursuing an investigation involving Gov. Nathan Deal.

New York – N.Y. Ethics Panel Toughens Rules to Shield Political Donors

The Journal News – Joseph Spector | Published: 9/24/2013

The New York Joint Commission on Public Ethics fine-tuned its process for granting exemptions from disclosing financing sources for nonprofit organizations and agreed to place exemption applications online for public view. The changes come as the commission says it is trying to balance public disclosure of groups’ major contributors with the need to protect donors’ privacy to keep them from harm.

Ohio – Federal Grand Jury Indictment Charges North Canton Businessman with Funneling Illegal Campaign Cash to Candidates

Cleveland Plain Dealer – James McCarty | Published: 9/25/2013

A federal grand jury returned an indictment charging Benjamin Suarez, the owner of a North Canton direct-marketing firm, and company Chief Financial Officer Michael Giorgio with conspiring to funnel illegal campaign contributions to U.S. Rep. Jim Renacci and Ohio Treasurer Josh Mandel. According to the FBI, Suarez and Giorgio recruited company employees and spouses to contribute to the campaigns, and then reimbursed them through payments disguised first as salary and later as profit sharing.

Ohio – Group Calls for Tougher Lobbyist Disclosures

Columbus Dispatch – Jim Siegel and Robert Higgs (Northeast Ohio Media Group) | Published: 9/19/2013

As Ohio’s natural gas industry has boomed, so have campaign contributions from the industry. That spending, coupled with a lack of reporting requirements for compensation paid to lobbyists should raise questions with voters about transparency and just who has access to government, said Ohio Common Cause.

Virginia – Ethics Issue Rises to Prominence in Va. Legislative Races

Washington Post – Antonio Olivo | Published: 9/21/2013

In a state that has long considered itself a place of clean government, the shadow of a federal probe into gifts received by Virginia Gov. Robert McDonnell and his family is hanging over dozens of state House of Delegate races. As the campaigns for the general elections ramp up, both major parties are seeking to leverage the ethics issue for political gain, or at least keep it from hampering their chances for victory.

Washington – New Lobbyist Meal Form to Distinguish Chowder from Steak

KUOW – Austin Jenkins | Published: 9/23/2013

The Washington Public Disclosure Commission will decide at its September 26 meeting whether to update the form lobbyists use to report spending on entertainment. Media reports have noted many lobbyists do not include a per-person amount for dinners with lawmakers.

Wisconsin – Madison Passes Ordinance Forcing Stricter Campaign Spending Disclosure

Capital Times – Jack Craver | Published: 9/23/2013

The Madison Common Council approved an ordinance that will require groups making independent campaign expenditures in city elections to disclose the spending and their donors. Although the Government Accountability Board put in place a rule in 2010 that addresses such ads, the agency has not enforced the rule since it was challenged.

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.

National:

Tax Filings Hint at Extent of Koch Brothers’ Reach

New York Times – Nicholas Confessore | Published: 9/12/2013

Freedom Partners, a nonprofit with ties to Charles and David Koch, provided grants of $236 million to conservative organizations before the 2012 election. The group reflects a shift in the tax strategies the Koch operation deploys to avoid challenge from the IRS which limits how much nonprofit groups can spend to aid or defeat candidates.

Federal:

Former FEC Chairman Donald McGahn Resigns from Panel

Washington Post – Reid Wilson | Published: 9/17/2013

Donald McGahn reigned from the FEC to return to private law practice at Patton Boggs. McGahn, a Republican, clashed frequently with Democrats as he helped push a conservative interpretation of campaign finance laws and persistent skepticism about government oversight of campaigns. His term expired in 2009, but it was not until this year that a replacement was nominated amid a state of gridlock at the agency.

Red Cape Drawing Bids during Jackson Jr. Auction

BusinessWeek – Michael Tarm (Associated Press) | Published: 9/18/2013

Memorabilia once owned by former U.S. Rep. Jesse Jackson, Jr. (D-Ill.) is being auctioned off by the U.S. Marshals after his guilty plea in a corruption case. A dozen items including autographed Bruce Lee and Michael Jackson collectibles and furs formerly belonging to Jackson went up for auction, with the bidding ending September 26. Whatever money is generated will be subtracted from the $750,000 he owes the government.

From the States and Municipalities:

Arizona – Commission Challenges Campaign Spending Hikes

Arizona Daily Sun – Howard Fischer (Capitol News Services) | Published: 9/19/2013

The Arizona Citizens Clean Election Commission believes Maricopa County Superior Court Judge Mark Brain erred in concluding state lawmakers are free to reset campaign contribution limits. The commission asked the Court of Appeals to overturn Brain’s ruling that allowed the higher caps to take effect on September 13. The appellate judges agreed to consider the request on October 9.

California – Campaign Finance Bills Fare Poorly in California Legislature

Los Angeles Times – Chris Megerian and Melanie Mason | Published: 9/17/2013

Bills that would have increased the power of the Fair Political Practices Commission, increased fines for violations, and forced greater disclosure of donors, among other measures, all stalled in the California Legislature. It remains to be seen whether new campaign finance rules could be put in place before next year’s June primary or even the November general election.

Florida – After Questions, Gov. Rick Scott Cancels $25,000 Alligator Hunt Fundraiser

Tampa Bay Times – Steve Bousquet | Published: 9/11/2013

Gov. Rick Scott has called off an alligator hunting trip to raise funds for his 2014 re-election campaign. Golfing weekends, concerts, and deep-sea fishing fundraisers are common in Florida politics, but a gator hunt was such an anomaly that it made major news among bloggers and political Web sites.

Georgia – Clock Running Out on Free Football Tickets for Politicians

Marietta Daily Journal – Ray Henry (Associated Press) | Published: 9/15/2013

A new law taking effect on January 1 bans lobbyists from giving Georgia officials free college football tickets. Disclosure reports show lobbyists have given politicians almost $1,400 in football tickets and related entertainment since the start of the season in late August. Last year, registered lobbyists shelled out more than $14,000 in tickets and perks at the games.

Indiana – Indiana Utility Regulators, under Pressure, Say They Won’t Take Industry Money to Fund Conference

Indianapolis Star – John Russell | Published: 9/12/2013

The Indiana Utility Regulatory Commission dropped a plan to seek money from utility trade groups to help pay for a conference of energy regulators from 14 states despite gaining clearance from the state Ethics Commission. Leaders of consumer and environmental groups had objected to the fundraising, saying it presented conflicts-of-interest for the state panel that approves electricity and natural gas rates to ask the utility industry for money.

Missouri – Rep. Penny Hubbard Provided Key Vote for Two Overrides; Son Got Lobbying Jobs

St. Louis Post-Dispatch – Virginia Young | Published: 9/13/2013

Missouri Rep. Penny Hubbard provided key votes to help override vetoes of bills on which her son had recently been hired as a lobbyist. In one instance, Hubbard had initially voted against a bill limiting lawsuits against the Doe Run Co. But she joined the Republican majority in overriding Gov. Jay Nixon’s veto. One day earlier, her son had gotten a lobbying job with Doe Run.

Montana – Federal Judge Says Montana’s Campaign Disclosure Requirement Is Constitutional

Washington Post – Matt Goras (Associated Press) | Published: 9/17/2013

U.S. District Court Judge Dana Christensen ruled Montana’s requirement that political committees disclose their campaign spending is constitutional. Christensen wrote the public’s right to know who is financing campaigns outweighs the minimal burden imposed on committees required to report the information.

Pennsylvania – Pa. Capitol Portraits Display Plenty of Conviction

Pittsburgh Post-Gazette – Kate Giammarise | Published: 9/16/2013

The portraits of past House and Senate leaders lining the Capitol’s hallways include several former Pennsylvania legislators now in prison on a variety of corruption-related charges. Despite the resemblance to a rogues’ gallery in some places, the paintings likely are not going anywhere.

Texas – DeLay Conviction Overturned

Houston Chronicle – Mike Snyder and Patricia Kilday Hart | Published: 9/19/2013

An appeals court threw out the criminal conviction of former U.S. House Majority Leader Tom DeLay, saying there was insufficient evidence for a jury in 2010 to have found him guilty of money laundering and conspiracy for helping illegally funnel corporate money to Texas candidates in 2002. Delay was sentenced to three years in prison, but his sentence was on hold while his case made its way through the appellate process.

Virginia – Former Chef Pleads No Contest to Stealing Food from Va. Governor’s Mansion

Washington Post – Rosalind Helderman and Laura Vozzella | Published: 9/19/2013

Todd Schneider, the former chef at the Virginia governor’s mansion, pleaded no contest to reduced charges that he stole food from the first family’s kitchen and was ordered to repay the state $2,300, resolving the dispute that sparked a political and legal crisis for Gov. Robert McDonnell, and entangled state Attorney General Ken Cuccinelli, the Republican candidate for governor.

Washington – Public Disclosure Commission Hacked

Tacoma News Tribune – Rachel LaCorte (Associated Press) | Published: 9/18/2013

The Washington Public Disclosure Commission’s (PDC) network was breached earlier in September, though officials said no information was compromised. Michael Smith, the PDC’s chief technology officer, said passwords have been changed and the agency has been scanning its sites looking for potential points of vulnerability.

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.

Federal:

Firm Asks for Disclaimer Exemption for Mobile Political Advertising

Huffington Post – Paul Blumenthal | Published: 9/11/2013

A digital media firm is asking the FEC to exempt mobile ads from the traditional disclosure statements that apply to political ads. Revolution Messaging said most ads produced for the mobile platforms do not have enough pixels to reasonably include more than a dozen words required to identify who paid for the spot. The firm said disclosures would take up more than 40 percent of the available space for a mobile advertisement.

From the States and Municipalities:

Arizona – Opponents Go to Court to Stop Higher Campaign Limits

Arizona Daily Sun – Howard Fischer (Capitol News Services) | Published: 9/11/2013

A judge is considering whether to block a new Arizona law increasing limits on campaign contributions. The Citizens Clean Elections Commission contends the statute violates constitutional restrictions on changing voter-approved laws. Under the law, which takes effect on September 13, the cap on some donations would rise to $4,000.

California – Hansen Agrees to $50,000 Fine, Says He Doesn’t Want His Signatures Used in Anti-Arena Effort

Sacramento Bee – Ryan Lillis | Published: 9/9/2013

Hedge-fund manager Chris Hansen and two political consultants have agreed to pay a $50,000 fine for failing to disclose a campaign contribution to a group seeking to block a new Sacramento sports arena. Hansen was accused of making an anonymous $100,000 donation in June to a signature-gathering effort to require a citywide vote on public subsidies for sports facilities.

California – Three Fined for Covert Lobbying in California

Sacramento Bee – Laurel Rosenhall | Published: 9/9/2013

Three partners in a public affairs firm will pay fines for trying to influence state government decisions without registering as lobbyists. The Fair Political Practices Commission accused the employees of California Strategies of crossing “the line which separates policy consultants from lobbyists.” The settlement with Jason Kinney, Rusty Areias, and Winston Hickox requires all three to register as lobbyists and, along with their firm, pay a combined fine of $40,500.

District of Columbia – D.C. Executive Linked to Secret 2008 aid to Hillary Clinton

Washington Post – Ann Marimow and Philip Rucker | Published: 9/12/2013

Federal prosecutors say marketing executive Troy White received $600,000 in illicit funds to do unsolicited campaign work for Hillary Clinton in the 2008 presidential election. White pleaded guilty for failing to file tax returns reflecting the amount his company was paid. Court documents outlined an elaborate scheme and said White worked with District of Columbia businessperson Jeffrey Thompson to help Clinton during several primaries.

Florida – Execution Rescheduled to Accommodate Pam Bondi Fundraiser

Tampa Bay Times – Adam Smith | Published: 9/9/2013

Florida Attorney General Pam Bondi persuaded Gov. Rick Scott to postpone an execution because it conflicted with her campaign fundraising reception. Shortly before a scheduled execution, the state attorney general typically phones the governor to inform him or her there is no legal basis for delay. After Scott had rescheduled the execution for September 10, the date of Bondi’s “hometown campaign kickoff,” her office asked that it be postponed; the new date is October 1.

Florida – Senate Prez Wants to Start Auditing Lobbying Reports

Orlando Sentinel – Aaron Deslatte | Published: 9/9/2013

Florida Senate President Don Gaetz wants the Legislature to make good on a never-enforced requirement that lobbying firms be subjected to random audits. He said he had asked the Senate’s general counsel to work with the House to determine how to kick-start the audits. Gaetz said the main holdup may be whether the Legislature has budget authority to begin the audits, or whether it would have to wait until the next fiscal year to launch them.

Indiana – Should Indiana Regulators Raise Money from Utility Trade Groups to Pay for Conference?

Indianapolis Star – John Russell | Published: 9/11/2013

The state ethics agency approved a request from the Indiana Utility Regulatory Commission to solicit donations from utility trade groups to fund a conference of regulators from 14 states to be held in Indianapolis. Watchdogs say such a move could give utility groups a chance to curry favor with regulators, who make decisions on whether companies can raise rates or build new plants.

Missouri – Missouri House Speaker’s Side Business Raises Ethical Issues

Kansas City Star – Jason Hancock | Published: 9/6/2013

In addition to his job as a legislator and his position with a law firm, state House Speaker Tim Jones also earns money from the Missouri Freedom Alliance. Jones has offered conflicting explanations of what type of work the group does. First, he said it was legal consulting on basic legislative process. Jones later said it had nothing to do with legislative issues and instead focused on private legal matters.

New Jersey – Christie Vetoes Bill to Move General Election to October

Newark Star Ledger – Matt Friedman | Published: 9/9/2013

New Jersey Gov. Chris Christie vetoed a bill that would have moved the November 5 general election to the date of the special U.S. Senate election on October 16. Christie also vetoed a bill that would let voters who go to the polls in October to also vote early for the November election, when the governor and all 120 seats in the Legislature are being contested.

New Mexico – Donald Duck, New Mexico Lobbyist

New Mexico Watchdog – Rob Nikolewski | Published: 9/12/2013

New Mexico Watchdog found “Donald Duck” on the list of registered lobbyist in the state. According disclosure reports, Donald spent $200 on dinner for “Senator Mickey Mouse” at The Bull Ring, a popular restaurant in Santa Fe.

New York – Forgive? No, a Night to Forget for Scandal-Tarred Candidates

New York Times – Michael Grynbaum | Published: 9/11/2013

Election Day was sobering for a peculiar brand of politician that emerged in the New York City election season: the scandal-tarred scoundrel seeking a second chance. The results reflected the mood of an electorate whose tolerance for the well-trod path of political repentance may have reached its limits.

Pennsylvania – Pa. Lawmakers Eye Bills to Thwart Corruption

PhillyBurbs.com – Natasha Lindstrom | Published: 9/9/2013

More than three dozen public officials in Pennsylvania have faced corruption charges since 2007. The House State Government Committee held a recent hearing to take testimony on ways the ethics law can be strengthened in hopes of restoring public confidence in state government.

Tennessee – TN Ethics Commission Opts Not to Fine Tom Ingram

The Tennessean – Chas Sisk | Published: 9/12/2013

The Tennessee Ethics Commission voted to dismiss a complaint filed against Gov. Bill Haslam that said he failed to disclose how much he paid Tom Ingram, his former chief campaign strategist, for political advice. The commission also declined to fine Ingram on for failing to disclose a lobbying relationship with a company hoping to win permission to mine on public land.

Washington – Ethics Rules Limit Freebies

Spokane Spokesman-Review – Jim Camden | Published: 9/6/2013

With college football season just starting up, Washington’s Legislative Ethics Board clarified that state lawmakers are not permitted to accept free tickets for themselves and family members. But it is all right for a legislator to attend a game as the guest of the university president and sit in the president’s box.

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.

National:

Battle over Dark Money Takes Many Forms on State Level

Sunlight Foundation – Peter Olsen-Phillips | Published: 9/5/2013

A Sunlight Foundation survey found dozens of laws that passed or are pending in state Legislatures addressing the U.S. Supreme Court’s Citizen United ruling. The foundation said while few bills have made it into law so far, the legislation that has been introduced suggests widespread interest in improving transparency at the state level.

Federal:

Feds Could Allow Bitcoin Campaign Donations

Politico – Byron Tau | Published: 9/4/2013

The FEC may determine rules governing donations made in Bitcoins and how they apply to campaigns. Lawyers for Conservative Action Fund PAC asked the agency decide if candidates and outside groups are allowed to accept the digital currency, in addition to U.S. dollars. Bitcoin, which allows for anonymous, encrypted digital transactions, has come under fire from regulators who worry about the lack of oversight and the currency’s potential use in crime.

From the States and Municipalities:

Alaska – Alaska Town Roots for Feline Mayor Attacked by Dog

Houston Chronicle – Rachel D’Oro (Associated Press) | Published: 9/5/2013

The honorary mayor of Talkeetna, Alaska is in bad shape after being attacked by a dog. Stubbs the cat made it to the mayor’s office through a write-in campaign. He has held the honorary position for more than 15 years. His election earned him enough press to catapult the town at the base of Mount McKinley into a tourist destination.

California – California Republicans Thrive at the Local Level

Los Angeles Times – Mark Barabak | Published: 9/3/2013

Over the last two decades, California has become a Democratic fortress, beyond the GOP’s reach in presidential campaigns and all but hopeless in statewide contests. At the local level, the picture is quite different. Despite the Democrats’ sizable statewide registration advantage, Republicans hold close to half the 2,500 mayoral and city council seats in California.

California – New Rules Give Daily Updates on Money in Mayor’s Race

San Diego Union Tribune – Craig Gustafson | Published: 9/4/2013

New rules in San Diego require any campaign contribution of $1,000 or more be disclosed within 24 hours during the 90-day period before an election. That is an expansion from the earlier state law that mandated such disclosures in the final 16 days of a race. The change will be in effect for the November 19 special election for mayor.

Colorado – In Colorado Recall Law, Victory for Incumbents Means Cash Refunds

Denver Post – Kurtis Lee | Published: 9/3/2013

If Senate President John Morse and Sen. Angela Giron win their recall elections, Colorado law provides that incumbents can collect up to 10 cents per vote. Morse and Giron, who face recalls for their support of gun laws passed this year by the Legislature, would have 60-days after the date of the recall election to file a request with the state.

Florida – Top Florida Senate Aide Gets $400,000 as Moonlighting Political Consultant

Tampa Bay Times – Mary Ellen Klas | Published: 8/31/2013

For three years, Chris Clark took a leave of absence from his job as a legislative staff member when the session ended and went to work as Florida Senate President Don Gaetz’s campaign manager, and earned more than $400,000. The lucrative arrangement underscores the financial ties special interests have with the Legislature as staff often cycle in and out of government and the private sector, developing relationships with the lobbyists who have a financial stake in influencing them.

Kentucky – Ex-Hoops Star Reaches Plea Deal, Could Get 2 Years

Kansas City Star – Roger Alford (Associated Press) | Published: 9/5/2013

Former Kentucky Agriculture Commissioner Richie Farmer entered into agreements with federal and state prosecutors, as well as the Executive Branch Ethics Commission, that would resolve all charges against him. He will plead guilty to two counts and receive a sentence in the range of 21 to 27 months. Farmer had faced a five-count federal indictment for misusing state resources. He also faced a 42-count charge brought by the commission.

Massachusetts – Former Mass. LG Fined for Campaign Violations

Boston Globe – Bob Salsberg (Associated Press) | Published: 8/29/2013

Timothy Murray agreed to pay $80,000 to settle charges he collected illegal campaign contributions raised by two public officials, capping a controversy that derailed the former Massachusetts lieutenant governor’s political career. Murray collected tens of thousands of dollars in donations solicited by former Chelsea Housing Authority Executive Director Michael McLaughlin, who was indicted for several campaign finance violations, including unlawful solicitation by a public employee.

New Jersey – Birdsall Services Group Ordered to Pay $1 Million after Pleading Guilty to Making Illegal Campaign Contributions

Bergen Record – Abbott Koloff | Published: 8/31/2013

Birdsall Services Group was ordered to $1 million in criminal penalties for making illegal campaign contributions that violated New Jersey’s “pay-to-play” law. The engineering firm is prohibited from working on government contracts in New Jersey for 10 years. Birdsall ceased operating after it declared bankruptcy earlier this year and sold its assets to a California company.

New Mexico – Judge Strikes Down City Ban on Corporate Gifts

Albuquerque Journal – Dan McKay | Published: 9/5/2013

U.S. District Court Judge M. Christine Armijo ruled Albuquerque’s ban on corporate campaign contributions is unconstitutional. Armijo did not explicitly address a companion prohibition that covers donations from city contractors. Her earlier decisions, however, restricted the scope of that ban.

Oklahoma – Oklahoma Ethics Commission Seeks Clearer Rules

Enid News & Eagle – Dale Denwalt | Published: 8/30/2013

Oklahoma Ethics Commission Director Lee Slater said a rewrite of the rules governing lobbying and campaign finance is on schedule. Slater said the first set of draft rules, dealing primarily with administrative matters, will be posted soon. Additional draft guidelines will be posted around the first of October and the first of November. The commission expects to vote on a final draft in January. Those rules will become effective 90 days after adoption unless they are rejected by the Legislature.

South Carolina – Leadership Positions Pay Off in Legislature

The State – Jamie Self | Published: 9/1/2013

Climbing the leadership ladder in the South Carolina General Assembly pays fundraising dividends for powerful lawmakers, according to campaign finance reports. A review by The State found contributions increased substantially for six members elevated to powerful leadership roles in the committees that oversee state spending and laws, and the Legislature’s political caucuses.

Texas – Eluding Big Ethics Fines

San Antonio Express-News – David Saleh Rauf | Published: 9/1/2013

The Texas Ethics Commission, when challenged in court, rarely walks away with the fine it originally levied. Experts point to the appeals process, which the commission and some lawmakers argue undermines the agency’s enforcement muscle. Since 1992, the commission has been challenged four times in court and forced to settle for reduced penalties in three cases.

Virginia – Study Highlights Check-Splitting in Va. Gift Reporting

Washington Post – Laura Vozzella | Published: 8/28/2013

Lobbyists who entertain state officials in Virginia often report each meal as a gift provided by multiple clients. Spreading entertainment costs across multiple clients also understates the value of gifts provided to legislators, who base their disclosure reports on gift summaries that lobbyists provide at the end of the year. Although the practice is not necessarily intended to dodge reporting requirements, it is drawing more scrutiny.

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.

National:

Private Lobbyists Get Public Pensions in 20 States

Politico; Associated Press –   | Published: 8/26/2013

Lobbyists in at least 20 states receive public pensions because they represent associations of counties, cities, and school boards. Legislatures granted them access decades ago on the premise that they serve governments and the public. But several states have started to question whether these organizations should qualify for such benefits, since they are private entities in most respects.

From the States and Municipalities:

California – San Diego Mayor Bob Filner Resigns, Faces Criminal Investigation

Los Angeles Times – Tony Perry and Richard Marosi | Published: 8/23/2013

San Diego Mayor Bob Filner resigned under a barrage of sexual harassment complaints, offering an apology to his accusers while still denying the allegations. In exchange for his resignation, the city will pay most of Filner’s legal fees. It will also cover any punitive damages against him in any lawsuit. A spokesperson for the state attorney general’s office confirmed a criminal investigation into Filner’s treatment of women is underway.

California – State Panel Changes Disclosure Rules for Public Officials’ Travel

Los Angeles Times – Patrick McGreevy | Published: 8/22/2013

The California Fair Political Practices Commission (FPPC) revised gift rules involving travel by elected officials. “[The FPPC] can only require disclosure or impose restrictions if there is a personal benefit to the individual,” said agency Chairperson Ann Ravel.

Connecticut – Former Donovan Aide Gets 38 Months in Campaign Scandal

Hartford Courant – Dave Altimari | Published: 8/27/2013

Robert Braddock, the ex-campaign finance director to former Connecticut House Speaker Chris Donovan’s unsuccessful congressional campaign, was sentenced to more than three years in prison. Braddock and seven other co-defendants who pleaded guilty were involved in a scheme that funneled nearly $28,000 to Donovan’s campaign through straw donors in an effort to get Donovan to defeat proposed legislation to raise taxes on roll-your-own cigarette shops.

Florida – Lobbyist Fee Reports Are Just another Type of Competition

Orlando Sentinel – Aaron Deslatte | Published: 8/23/2013

The large paydays reported by some Florida lobbying firms are causing many to cry foul on the state’s disclosure law. The behind-the-scenes criticism is focused on the law’s requirements mandating only that lobbyist detail what they are paid to ply their trade in $10,000 ranges. The reports have never been subjected to audits. Many complain other lobbyists engage in financial gamesmanship in order to boost their status or draw new clients.

Florida – Texas-Sized B-Day Party for Scott Aide Hosted by Lobbyist and Wife

Tampa Bay Times – Michael Van Sickler | Published: 8/27/2013

Florida Gov. Rick Scott’s chief of staff, Adam Hollingsworth attended a birthday party for another top gubernatorial staffer at the home of Daniel and Monica Russell. Daniel Russell is a registered lobbyist for Northrop Grumman, which has been in talks with the state about tax incentives for the company. The office handling those negotiations is the Department of Economic Opportunity, where Monica Russell is the spokesperson.

Illinois – DuPage County Board Loosens Cap on Campaign Contributions

Chicago Daily Herald – Robert Sanchez | Published: 8/28/2013

In an attempt to align itself with Illinois’ campaign finance law, the DuPage County Board voted to raise the county donation limit from $1,000 to the state standard of $5,300. The cap had applied to companies and consulting firms, as well as officers and owners of those entities, as well as to any individual appointed or applying for a position on a board, commission, authority, task force, or advisory committee.

Missouri – Klahr Chosen as Director of Mo. Ethics Commission

Miami Herald; Associated Press –   | Published: 8/27/2013

The Missouri Ethics Commission chose James Klahr to be the agency’s executive director beginning on September 13. He was a staff attorney for the state Senate and for Gov. Jay Nixon. Klahr replaces Julie Allen, who stepped down to become the elections director for the secretary of state’s office.

Missouri – Mo. Rep. LaFaver Arrested for Possessing Pot, Quits Democratic Campaign Role but Not House

Columbus Republic – David Lieb (Associated Press) | Published: 8/26/2013

A Missouri lawmaker who was arrested for possession of marijuana during a traffic stop said he would not resign. State Rep. Jeremy LaFaver has, however, stepped down as chairperson of the Democratic Party’s 2014 campaign committee. During this past legislative session, LaFaver sponsored a bill that would have reduced the penalties for marijuana possession; it did not pass.

Nevada – Emails Show How Political Advisers Trumped Staff in Winning Support for ‘More Cops’ Tax

Las Vegas Sun – Anjeanette Damon | Published: 8/27/2013

Before the 2013 legislative session began, Nevada Gov Brian Sandoval followed the advice of outside political advisors and decided to support a tax increase. An email exchange about the move offers a look into who holds sway at the governor’s office, including the role of the two lobbyists.

New York – Millions Sweeten the Casino Pot

Albany Times Union – James Odato | Published: 8/27/2013

The Seneca Indian Nation agreed to give David Flaum a $3 million “development fee” if a casino opens in Monroe County, and a contingency fee of up to $5 million if the tribe gets a state gaming compact by October 1. Lobbyists are banned from receiving contingency fees in New York. Flaum would have to register as a lobbyist if he begins appearing before government officials on behalf of the tribe, particularly for a gaming compact, and contract terms suggest the tribe might direct him to do so.

Ohio – Gov. John Kasich and Ohio Ethics Commission Linked by Political Contributions, Records Show

Cleveland Plain Dealer – Henry Gomez | Published: 8/23/2013

A Cleveland Plain Dealer analysis shows three of the five members of the Ohio Ethics Commission or their spouses have contributed to Gov. John Kasich’s campaigns over the years. Democrats see new relevance in these ties as they call for an ethics investigation of Kasich. The commission rejected a request to explore the governor’s involvement with Worthington Industries, a company that received state tax credits.

Ohio – OH Treasurer Crashes Twice, Makes No Staff Report

Miami Herald – Julie Carr Smyth (Associated Press) | Published: 8/27/2013

Ohio Treasurer Josh Mandel might have violated state and federal campaign laws by traveling across the state this year in a vehicle bought by his failed 2012 U.S. Senate campaign. The possible violation only came to light after a traffic accident in which the Jeep Grand Cherokee was totaled.

Texas – Texas Mayor, Brother, Dad Charged with Corruption

Kansas City Star; Associated Press –   | Published: 8/28/2013

The mayor of a small city in Texas and his brother, the president of the local school board, were charged in a public corruption case that prosecutors said maintained a stranglehold over local government business for years. Also arrested was Jose Vela, the pair’s father and a maintenance worker at the local high school. Prosecutors said he ran city government through his sons and a revolving door of city council and school board candidates recruited by his family.

Virginia – Lax Laws Lead to Cloudy View of Lobbyists’ Spending

The Virginian-Pilot – Julian Walker | Published: 8/29/2013

Lobbyists reported spending $15.9 million in Virginia from May 2012 to April 2013. But critics say it is an incomplete financial picture of all that goes into policy persuasion and legislative influence in a state with lax reporting standards and enforcement of lobbyist disclosures.

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.