January 3, 2014 •
News You Can Use Digest – January 3, 2014
National: Social Conservatives Make Big Money Plans Politico – Kenneth Vogel | Published: 1/2/2014 The religious right’s wealthiest backers and top operatives plan to elevate the place of social issues like abortion and gay marriage in conservative politics. […]
National:
Social Conservatives Make Big Money Plans
Politico – Kenneth Vogel | Published: 1/2/2014
The religious right’s wealthiest backers and top operatives plan to elevate the place of social issues like abortion and gay marriage in conservative politics. They have been largely relegated to the sidelines as the business wing of the Republican Party establishment wages a bitter and expensive struggle against the tea party for the soul of the GOP.
Federal:
Lines Blur When Lobbyists Invest in Industries They Represent
Wall Street Journal – Brody Mullins, James Grimaldi, and Rebecca Ballhaus | Published: 12/26/2013
Through continual contact with public officials, lobbyists often glean intimate knowledge of pending policy changes and political activities that affect the fortunes of companies or industries they represent. Many also hold investments that overlap with their responsibilities, according to a review of public records. It showed about one in five lobbyists whose holdings could be identified had invested in their clients or companies in the industries they are concerned with.
From the States and Municipalities:
Arkansas – Ark. Lt. Gov. Rebuffs Calls to Resign amid Scandal
San Francisco Chronicle – Chuck Bartels (Associated Press) | Published: 12/31/2013
Arkansas Lt. Gov. Mark Darr, who said he would settle with his state Ethics Commission amid findings that he repeatedly broke campaign finance laws, defied mounting calls for his resignation, including one from Gov. Mike Beebe, and said he intended to remain in office. Darr has agreed to pay $11,000 in fines to settle the complaints.
California – Ex-Employee Accuses Lobbying Firm of Directing Illegal Contributions
Los Angeles Times – Patrick McGreevy and Paige St. John | Published: 12/26/2013
A lawsuit filed by former Sloat Higgins Jensen & Associates employee Rhonda Smira alleges owner Kevin Sloat and his firm directed illegal campaign contributions and unreported gifts to dozens of California lawmakers. Smira said she was ordered not to provide receipts for the gifts; that way, recipients could avoid disclosing the transactions on reports required by the state. The lawsuit says Sloat told her: “If I don’t report and there is no written record, and they don’t report it, then it didn’t happen.”
Georgia – Georgia Officials Take Lobbyist Gifts before New Rules
Augusta Chronicle – Ray Henry (Associated Press) | Published: 12/30/2013
Lobbyists splurged on gifts to Georgia lawmakers before restrictions took effect on January 1. Gov. Nathan Deal signed the new rules on May 6. While the state’s political leaders supported an end to unlimited lobbyist spending, the old system remained legal until New Year’s Day. Several politicians accepted gifts during this delay that would be illegal, or at least questionable, once the new restrictions start. Some questions about the law remain unresolved until the ethics commission creates rules interpreting the new law, a process that could take months.
Massachusetts – Teachers Union Revealed as Funder behind Pro-Walsh PAC
Boston Globe – Wesley Lowery | Published: 12/28/2013
The American Federation of Teachers was behind the last-minute, $480,000 advertising push on behalf of Boston Mayor-elect Martin Walsh, even though it was billed as the work of a start-up PAC dubbed One Boston. No information was disclosed at the time about One Boston’s ideological loyalties or donors, angering watchdog groups who had already been critical of the unprecedented amount of outside money that was flowing into the race, which ultimately became the state’s most expensive municipal contest ever.
Michigan – Gov. Snyder Signs Law to Double Michigan Campaign Contribution Limits, Codify ‘Issue Ad’ Rules
MLive.com – Jonathan Oosting | Published: 12/27/2013
Michigan Gov. Rick Snyder signed a bill doubling the state’s campaign contribution limits. The law includes a provision designed to thwart efforts by Secretary of State Ruth Johnson to reveal who pays for issue ads that have become increasingly influential in campaigns. Snyder said the law also increases transparency by requiring candidates to file additional campaign finance reports with the state during years in which they are not up for election.
Minnesota – Minnesota Political Spending Concentrated in Few Hands
Minneapolis Star Tribune – Rachel Stassen-Berger and Glen Howatt | Published: 12/30/2013
The Minneapolis Star Tribune found just three dozen individuals or entities have contributed more than $27 million to PACs and independent expenditure committees over the past three election cycles. The analysis shows the donations heavily favored Democrats. Minnesota Republicans acknowledged Democrats have benefited from superior organization, a more energized base, and campaign finance rules that make it easier for unions to donate.
Missouri – Missouri Lawmaker Wants Political Consultants to Stay Out of Policymaking
Kansas City Star – Dave Helling | Published: 12/24/2013
Missouri Sen. John Lamping filed an ethics reform bill that would prohibit consultants from working as lobbyists, and lobbyists from working as consultants. Lamping said operatives who help elect candidates should not be able to turn around and work for special-interest clients to influence those lawmakers, as is now routinely the case.
New York – Bratton Gives Revolving Door One More Spin
New York Times – J. David Goodman | Published: 12/23/2013
A “revolving door” between government service and the corporate world has long been a feature of politics, and police officials often pursue second careers after hanging up their uniforms. But few have done so with William Bratton’s scope. His return to New York City for a second tour as police commissioner may create an awkward situation. Bratton sits on the boards of two companies who hope to do business with the city, and is a senior adviser to a third.
North Carolina – New NC Law Increases Donation Limits, Curtails Some Disclosure in 2014
Raleigh News & Observer – John Frank | Published: 12/26/2013
North Carolina joined at least eight others states pushing for increases in campaign contribution limits this year. Starting January 1, state candidates and PACs can take maximum contributions of $5,000 per election. The top donation to judicial candidates will leap to the same level from the current $1,000 cap. The new law also weakens rules about what outside groups, such as nonprofits, issue advocacy organizations, and super PACs, must disclose.
South Carolina – S.C. Ethics Commission Owed $2.5 Million in Fines
Charleston Post & Courier – Seanna Adcox (Associated Press) | Published: 1/1/2014
Candidates, lobbyists, and committees owe nearly $2.5 million in fines to the South Carolina Ethics Commission. Under state law, individuals are fined $100 for filing either campaign disclosure or economic interest forms five days late. Once a notice goes out, fines amass daily, up to $5,000 per form. Collecting can be difficult, especially from unsuccessful candidates.
Texas – Texas Republicans Lose 3 Major Donors in 2013
Houston Chronicle – Chris Tomlinson (Associated Press) | Published: 12/30/2013
The deaths this year of three major Republican campaign donors could signal a generational change for party kingmakers. Harold Simmons, Bob Perry, and Leo Linbeck, Jr. gave to Republican candidates and organizations across the country, but their influence was greatest in Texas, which has no limit on personal campaign contributions.
Virginia – Ethics Reform Seems Uncertain in General Assembly
The Daily Press – Dave Ress | Published: 12/29/2013
After a year that saw Virginia Gov. Bob McDonnell and Attorney General Ken Cuccinelli embarrassed by reports of tens of thousands of dollars’ worth of gifts they accepted from a business executive, ethics is again a talking point in Richmond. Gov.-elect Terry McAuliffe plans to issue an executive order banning gifts of more than $100 to executive branch officials, but there is no consensus on whether the Legislature will enact reforms.
Wisconsin – With Audit on the Horizon, the Elections Board Spends another Year in the Crosshairs
Wisconsin State Journal – Mary Spicuzza | Published: 12/29/2013
The Wisconsin Government Accountability Board (GAB), which is made up of six former judges, and its staff are preparing to celebrate their sixth anniversary. But the board is also awaiting the results of an audit ordered by state lawmakers, many of whom have been vocal critics of the agency. “The GAB is a national model, and it would be a tragedy and a travesty if it were eliminated,” said Daniel Tokaji, a law professor at Ohio State University.
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.
December 28, 2013 •
News You Can Use Digest – December 27, 2013
Federal: Political Advertisers and TV Stations Ignore Disclosure Rules The Sunlight Foundation – Jacob Fenton | Published: 12/18/2013 The Bipartisan Campaign Reform Act of 2002 requires television stations to make available detailed information about political ad buys, including […]
Federal:
Political Advertisers and TV Stations Ignore Disclosure Rules
The Sunlight Foundation – Jacob Fenton | Published: 12/18/2013
The Bipartisan Campaign Reform Act of 2002 requires television stations to make available detailed information about political ad buys, including the names of any elected officials mentioned in the ads and any national issues discussed in them. But a review by the Sunlight Foundation reveals TV stations often fail to report even the most basic information about the political ads that outside groups buy on their airwaves.
Upstart Groups Challenge Rove for G.O.P. Cash
New York Times – Nicholas Confessore | Published: 12/23/2013
At least a dozen super PACs are setting up to back individual Republican candidates for the U.S. Senate, challenging the strategic and financial dominance that Karl Rove and the group he co-founded, American Crossroads, have enjoyed ever since the Supreme Court’s Citizens United decision cleared the way for unlimited independent spending. Some are suggesting Crossroads’ ties to the Republican establishment and recent clashes with conservative activists are a potential liability for GOP incumbents facing tea party challengers.
From the States and Municipalities:
California – Common Cause Seeks New Limits on Gifts to California Officials
Los Angeles Times – Patrick McGreevy | Published: 12/19/2013
California Common Cause proposed reforms to the state’s gift law to reduce the ability of special interests to seek favor by providing expensive meals, lodging, and travel. The group’s recommendations include applying the $10-per-month limit on gifts from lobbyists to also include gifts from the lobbyists’ clients, and reduce the limit on gifts that can be accepted by state elected officials from $440 per source annually to $250.
Georgia – State Ethics Commission Approves Hiring of ‘Internal Mediator’
WABE – Michelle Wirth | Published: 12/19/2013
The Georgia ethics commission hired former administrative law judge Robert Constantine to help with daily operations while federal authorities probe the agency’s investigation into Gov. Nathan Deal’s campaign. Several commission members received federal grand jury subpoenas over the matter. Chairperson Kevin Abernathy said Constantine will serve as an intermediary between the commission and staff members, and will have the ability to help resolve any disputes among agency employees.
Louisiana – Five Years Later, Does Gov. Bobby Jindal’s Ethics System Work?
Baton Rouge Advocate – Marsha Shuler and Mark Ballard | Published: 12/22/2013
At his January 2008 inauguration, Louisiana Gov. Bobby Jindal announced a special legislative session to repair the state’s ethics system, saying he wanted to create a “gold standard.” Some observers say the decrease in violations shows the changes gummed up the works by making proceedings more like criminal prosecutions, with more lawyers, motions, and delays. Supporters of the changes argue the previous system was simply unfair.
Maryland – Half of Md. Lawmakers with Twitter Accounts Neglect to Comply with Disclosure Rule
Washington Post – John Wagner | Published: 12/20/2013
All candidates in Maryland are supposed to include an “authority line” when they promote themselves on social media. The Washington Post identified 92 Twitter accounts maintained by the state’s 188 senators and delegates. Of those, only 45 included authority lines that identify the name of the campaign entity and its treasurer.
Maryland – Md. Elections Board: Brown’s running mate can raise money during legislative session
Washington Post – John Wagner | Published: 12/19/2013
The State Board of Elections cleared the way for Maryland Lt. Gov. Anthony Brown’s gubernatorial campaign to raise money during the legislative session despite a law preventing state officials from seeking contributions during that period. The ruling addressed the issue of gubernatorial candidates and their political partners seeking to be lieutenant governor. While Brown, as a state official, cannot raise money during the session, his running mate, Howard County Executive Ken Ulman, is a local official and thus free to do so.
Lexology.com – Alexandra Megaris | Published: 12/17/2013
The New York City Council passed an ordinance revising the lobbying law. The definition of “lobbying” has been expanded, the schedule for filing reports was changed, and the dollar threshold for determining whether registration is required has been increased from $2,000 to $5,000 per calendar year, among other provisions. Most of the law takes effect on May 8, 2014; the registration threshold will become effective on January 1.
Oklahoma – Lawmakers’ Disclosures Reveal Little on Finances
Tulsa World – Curtis Killman | Published: 12/23/2013
Some are questioning what is required to be reported and the value of the information revealed to the public on Oklahoma lawmakers’ financial disclosure reports. In an age of growing transparency, the disclosure requirements provide little information when compared to congressional standards or those in other states.
Utah – More Swallow Revelations: Pay to play, hidden donations
Salt Lake Tribune – Robert Gehrke | Published: 12/20/2013
Investigators for the House Special Investigative Committee said former Utah Attorney General John Swallow and his predecessor, Mark Shurtleff, gave big donors extraordinary access in exchange for campaign contributions and special favors. The revelations upset committee members and several said they now want to continue the five-month probe that was shut down after Swallow announced his resignation.
Virginia – Chef Speaks Out about Va.’s McDonnells
Washington Post – Rosalind Helderman | Published: 12/21/2013
For months, Todd Schneider, the former chef at the governor’s mansion, has been the dramatic but silent figure who launched an investigation that has threatened to bring down Virginia Gov. Robert McDonnell. But he said now that his case is resolved and the governor is ending his term, it is time to speak out. It was Schneider who first alerted authorities that businessperson Jonnie Williams had paid for catering at the wedding of one of McDonnell’s daughters, a tip that spiraled into a broad criminal probe that has brought the governor to the brink of federal charges.
Washington – Washington Ethics Panel Tosses Free Meal Complaint, Encourages Legislature to Clarify Statute
Columbus Republic – Rachel LaCorte (Associated Press) | Published: 12/20/2013
The Legislative Ethics Board dismissed a complaint about some Washington lawmakers accepting free meals from lobbyists. The board said if the state Legislature does not address the issue in the 60-day session beginning in January, the panel will work to establish rules on an enforceable standard.
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.
December 20, 2013 •
News You Can Use Digest – December 20, 2013
Federal: How Washington Starves its Election Watchdog The Center for Public Integrity – Dave Levinthal | Published: 12/17/2013 The recent hacking of the FEC’s computer system marked the nadir of a year that ranks among the commission’s darkest, […]
Federal:
How Washington Starves its Election Watchdog
The Center for Public Integrity – Dave Levinthal | Published: 12/17/2013
The recent hacking of the FEC’s computer system marked the nadir of a year that ranks among the commission’s darkest, according to an investigation by the Center for Public Integrity. Bitter ideological warfare among commissioners and congressional and White House indifference have yielded an agency less able to fulfill its stated mission: to “prevent corruption in the federal campaign process by administering, enforcing, and formulating policy.”
From the States and Municipalities:
Arizona – Ariz. High Court Upholds Campaign Giving Limits
East Valley Tribune; Associated Press – | Published: 12/18/2013
The Arizona Supreme Court ruled candidates can accept much larger sums of money from donors. The justices said the Legislature was within its legal right to decide that contenders for both statewide and legislative office can take up to $4,000 from individuals and PACs. The brief order also lifted the injunction an appeals court put in place blocking the higher limits from taking effect.
California – L.A. City Council Drops Push for Increase in Gift Limit
Los Angeles Times – David Zahniser | Published: 12/11/2013
The Los Angeles City Council agreed not to raise the level of gifts that members are allowed to accept from the current $100 per donor per year. Council President Herb Wesson had sought a change in the law to allow members to receive up to $150 in gifts from each supporter, but he dropped that when his and other council members’ offices were deluged with calls.
Colorado – Appeals Court Upholds Ruling against Gessler
Colorado Law Week; Staff – | Published: 12/12/2013
The Colorado Court of Appeals ruled several changes to campaign finance disclosure regulations made by Secretary of State Scott Gessler were invalid. The court affirmed a lower court ruling that struck down rules that reduced or eliminated disclosure requirements for political committees, and threw out Gessler’s rule that narrowed the definition of “electioneering communications.”
Florida – David Jolly Has Unique Challenge: Lobbyist seeking seat in Congress
Tampa Bay Times – Alex Leary | Published: 12/10/2013
David Jolly parlayed his work as an aide to the late U.S. Rep. C.W. Young into a lobbying career, the quintessential Washington “revolving-door” story. As he pursues the Republican nomination in a congressional special election, opponents have seized on Jolly’s lucrative profession. Many former aides have left for K Street jobs over the years, returning to Capitol Hill to ply a system they know intimately. But it is rare for a lobbyist to run for office, and those who do face the same attacks as Jolly is now.
Georgia – State Sen. Don Balfour Cleared of All Charges
Creative Loafing Atlanta – Max Blau | Published: 12/19/2013
Georgia Sen. Don Balfour was found not guilty on all 18 felony corruption counts against him. He was accused of illegally claiming legislative expense and mileage pay, and double-billing the state and his private employer for some expenses. Balfour told jurors he was very busy as chairperson of the Senate Rules Committee and as an executive of Atlanta-based Waffle House, and the inaccurate filings were unintentional. Gov. Nathan Deal’s office said Balfour’s suspension from office is lifted immediately so he can resume his duties as a senator.
Georgia – Subpoenas Related To Ethics Complaints Involving Georgia Gov. Nathan Deal
Huffington Post – Christina Cassidy (Associated Press) | Published: 12/12/2013
A federal grand jury is investigating the Georgia ethics commission, which cleared Gov. Nathan Deal of campaign finance violations during his 2010 campaign. The grand jury has subpoenaed Executive Secretary Holly LeBarge, staff attorney Elisabeth Murray-Obertein, and staffer John Hair, seeking documents related to the commission’s probe of Deal’s campaign finances. Deal’s lawyer said the investigation likely concerns allegations that documents in the case went missing, and does not involve the governor.
Michigan – Michigan Senate OKs Campaign Donation Increases
Detroit News – Gary Heinlein | Published: 12/12/2013
Michigan lawmakers moved to raise maximum contributions to candidates for the first time in decades and keep intact rules so donors behind certain political ads can stay anonymous. Senate Bill 661 won final approval in the Senate after barely clearing the House a day earlier. Donation limits to candidates would double after going unchanged for 37 years and rise with inflation over time.
Minnesota – Minnesota Lawmakers Probe into Problems with State’s Campaign Finance Data
Minneapolis Star Tribune – Rachel Stassen-Berger and Glen Howatt | Published: 12/16/2013
Minnesota’s campaign finance regulatory agency plans to implement new auditing procedures and seek a law change to deal with errors in its online database of political fundraising transactions. Agency officials testified at a legislative hearing following a Minneapolis Star Tribune analysis that found one in seven electronic records of donations tracked by the Campaign Finance and Public Disclosure Board is incorrect.
Mississippi – Attorney General Jim Hood Appealing Federal Judge’s Ruling on Mississippi Campaign Finance Law
Mississippi Press; Associated Press – | Published: 12/14/2013
State Attorney General Jim Hood appealed a federal judge’s ruling that part of Mississippi’s campaign finance law creates an unconstitutional burden for people or groups that spend at least $200 to support or oppose a ballot initiative. U.S. District Court Judge Sharion Aycock has said Mississippi may regulate individuals and groups attempting to influence constitutional ballot measures, but its “convoluted and exacting” requirements are too burdensome with the $200 threshold.
New Jersey – Christie’s Top Port Authority Appointee Baroni Resigns amid Escalating Probe into GWB Lane Closures
Bergen Record – Shawn Boburg and John Reitmeyer | Published: 12/13/2013
A burgeoning scandal led to the resignation of Bill Baroni, the deputy executive director of the Port Authority of New York and New Jersey, and David Wildstein, who agreed to step down from his position as director of interstate capital projects. Both men have caught up in a widening investigation into allegations they may have orchestrated a series of massive traffic jams at the George Washington Bridge as political payback against the mayor of Fort Lee, the town at one end of the bridge, for not endorsing Gov. Chris Christie for re-election.
New Mexico – Federal Appeals Court Overturns New Mexico Campaign Funding, Spending Limits
Columbus Republic – Susan Montoya Bryan (Associated Press) | Published: 12/18/2013
The 10th U.S. Circuit Court of Appeals said a lower court was right in issuing a preliminary injunction to keep New Mexico from imposing limitations on certain contributions going to and from political parties and PACs. At issue is whether political committees that are not formally affiliated with a political party or candidate can receive unlimited contributions for independent expenditures. Republicans argue the state’s cap on such donations is unconstitutional.
New York – Where Albany Does Business
Capital Playbook – Jimmy Vielkind | Published: 12/5/2013
Time and again, the gears of government have turned not during official gatherings in meeting rooms at the New York Capitol, but over dinners and drinks at any number of “power spots” around the Albany region. Stop by any of these sites on a Monday or Tuesday night in January or July and you might be surprised who you run into, or what is going on.
Pennsylvania – Board Still Struggling with Phila. Gift Rule
Philadelphia Inquirer – Claudia Vargas | Published: 12/18/2013
Staff members for the Philadelphia Board of Ethics made their latest recommendation on proposed changes to the city’s gift law. The staff proposed barring city officers and employees from accepting any gifts worth more than $100 per year, including $25 in cash, from any nonfamily source. But the board and other ethics advocates are still not happy with the limits and the overall language.
Virginia – In Probe of Va. Gov. McDonnell, Prosecutors Agreed to Delay Decision on Charges
Washington Post – Rosalind Helderman, Carol Leonnig, and Sari Horwitz | Published: 12/19/2013
Federal prosecutors have delayed filing felony charges against Virginia Gov. Bob McDonnell and his wife over a gift scandal after their legal teams made a face-to-face appeal in Washington, D.C. The attorneys had been pressing Justice Department officials to reconsider or delay the charges, at least long enough for McDonnell to complete his four-year term.
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.
December 6, 2013 •
News You Can Use Digest – December 6, 2013
National: ALEC Facing Funding Crisis from Donor Exodus in Wake of Trayvon Martin Row The Guardian – Ed Pilkington and Suzanne Goldenberg | Published: 12/3/2013 A conservative group that critics say has undue influence on public policy faces […]
National:
ALEC Facing Funding Crisis from Donor Exodus in Wake of Trayvon Martin Row
The Guardian – Ed Pilkington and Suzanne Goldenberg | Published: 12/3/2013
A conservative group that critics say has undue influence on public policy faces a funding crisis and possible legal trouble, show internal documents. The documents indicate the American Legislative Exchange Council is appealing to major donors for help in averting a financial crisis, and is establishing a new project with a different name to help remove “questions of ethical violations made by our critics and state ethics boards,” reported The Guardian.
State Supreme Court Judges Reveal Scant Financial Information
The Center for Public Integrity – Reity O’Brien, Kytja Weir, and Chris Young | Published: 12/4/2013
All 50 states and the District of Columbia have more lax financial disclosure rules for their high court justices than the disclosure requirements for federal judges, according to an analysis by the Center for Public Integrity. Some states do not require any disclosure of gifts to judges; others have limits but with loopholes. The center cited Iowa, which allows these judges to receive gifts worth any amount for their wedding or for their 25th and 50th wedding anniversaries.
Federal:
Capitol Metrics Bridges Lobbying and Data
Washington Post – Catherine Ho | Published: 12/1/2013
There were not many data-driven resources for lobbyists to research their competitors or potential merger partners. Then John Brain got the idea to create Capitol Metrics. It compiles lists of the top lobby firms by revenue, as well as the companies and associations that are spending the most on lobbying. Capitol Metrics also breaks down some of the data and packages it in a way that a lobbyist can better spot opportunities to pick up new business.
SEC Backs Off Corporate Giving Regs
The Hill – Ben Goad | Published: 12/2/2013
The Securities and Exchange Commission dropped a proposal to require publicly traded firms to disclose campaign spending to their shareholders from its list of regulatory priorities, a potential setback for watchdogs looking for ways to force some of the anonymous money in elections into public view. The issue drew more than 650,000 written comments, along with rebukes from trade groups, which argued the push was intended to silence of voice of business in politics.
From the States and Municipalities:
Arizona – Donation Cap for Political Campaigns Still in Place, for Now
East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 11/26/2013
The Arizona Supreme Court rejected a bid by top Republican lawmakers to allow campaign donors to give more while the justices review the legality of the increase. The justices agreed to give the GOP interests a chance to convince them the Court of Appeals erred in ruling the Legislature acted unconstitutionally earlier this year in approving the sharp increase. A hearing is set for December 17.
District of Columbia – Council Unanimously Approves Campaign Finance Reform Legislation
DCist.com – Matt Cohen and Sarah Anne Hughes | Published: 12/4/2013
The District of Columbia Council unanimously passed a campaign finance reform bill recently. The legislation will restrict contributions from related businesses and require campaigns to report all fundraising data online. The bill also limits money order donations to $100. Lobbyists will have to disclose any contributions bundled and forwarded to a campaign.
Louisiana – Super PAC Backing Sen. David Vitter Says State Has No Choice, Must Lift $100,000 Contribution Limit
New Orleans Times Picayune – Bruce Alpert | Published: 12/4/2013
The Fund for Louisiana’s Future, the super PAC created to support U.S. Sen. David Vitter, wants to end enforcement of the state’s $100,000 limit on independent committee donations. The U.S. Supreme Court’s 2010 ruling that equated spending on independent political expenditures with free speech, and a follow-up decision by a federal appeals court, makes it clear that such limits are unconstitutional, say lawyers for the PAC. Groups favoring limits on campaign spending do not necessarily disagree.
Minnesota – ‘Free Lunches’ Back on Menu for Minnesota Legislators
Minneapolis Star Tribune – Abby Simons | Published: 12/3/2013
For the first time in 19 years, Minnesota lawmakers and their staff will be allowed to eat and drink for free at receptions hosted by special interest groups, as long as all 201 legislators are invited at least five days in advance. Backers of the new law say the easing of what once was one of the strictest gift bans in the nation was needed as a way to restore camaraderie in an increasingly polarized Legislature. The law still prohibits lawmakers from accepting gifts in more exclusive gatherings.
Missouri – Prefiled Bills Suggest Ethics Reform on Agenda
Springfield News-Leader – Jonathan Shorman | Published: 12/4/2013
Eight ethics reform bills have been filed in the Missouri Senate by members of both parties. Senate Bill 486 would cap the amounts any one donor may give to a candidate: $25,000 for gubernatorial and statewide candidates, $10,000 for senators, and $2,500 for representatives and other public offices. Senate Bill 512 requires lawmakers to reimburse lobbyists for expenses within 30 days.
Nevada – Nevada Supreme Court Upholds Ethics Laws
San Francisco Chronicle – Sandra Chereb (Associated Press) | Published: 11/27/2013
The Nevada Supreme Court upheld the state Ethics Commission’s censure of a former Sparks City Council member who voted for a casino project even though his campaign manager was a consultant on the project. The decision reversed an earlier high court opinion that found the ethics law prohibited Councilperson Michael Carrigan from exercising his First Amendment rights to free speech.
New Mexico – New Mexico’s ‘Revolving Door’
Albuquerque Journal – Dan Boyd | Published: 11/29/2013
New Mexico lawmakers are free to resign one day and start lobbying the next. A recent report by a watchdog group identified 26 former legislators who work as lobbyists. Critics say the “revolving-door” practice erodes public trust in government by allowing former lawmakers to cash in on their expertise and connections with former colleagues.
New York – Report: Reform can’t wait
Albany Times Union – Casey Seiler | Published: 12/2/2013
A state commission investigating public corruption in New York recommended a system of public financing for state elections, an independent election-law enforcement agency, and stricter disclosure policies for legislators, saying a “permissive culture of both illegal and legal corruption” must change. Gov. Andrew Cuomo is expected to use the panel’s suggestions as the basis for a series of ethics law changes in 2014.
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.
November 27, 2013 •
News You Can Use Digest – November 27, 2013
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 […]
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.
November 22, 2013 •
News You Can Use Digest – November 22, 2013
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 […]
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.
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.
November 15, 2013 •
News You Can Use Digest – November 15, 2012
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, […]
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.
November 8, 2013 •
News You Can Use Digest – November 8, 2012
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 […]
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.
November 1, 2013 •
News You Can Use Digest – November 1, 2013
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 […]
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.
October 25, 2013 •
News You Can Use Digest – October 25, 2013
Here are highlights from the latest edition of News You Can Use:
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.
October 18, 2013 •
News You Can Use Digest – October 18, 2013
Here are highlights from the latest edition of News You Can Use:
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.
October 11, 2013 •
News You Can Use Digest – October 11, 2013
Here are highlights from the latest edition of News You Can Use:
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.
October 4, 2013 •
News You Can Use Digest – October 4, 2013
Here are highlights from the latest edition of News You Can Use:
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.
September 27, 2013 •
News You Can Use Digest – September 27, 2013
Here are highlights from the latest edition of News You Can Use:
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.
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.
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