Jersey City Councilman Michael Yun has proposed changes to the city’s pay-to-play laws.

The changes would broaden the laws to include the city’s autonomous agencies as well as restrict some vendors from contributing to city elected officials seeking higher office. The proposal would also extend the ban on no-bid city contracts, from one year to four years, for those who contribute more than $300 to a candidate.

Yun, a longtime critic of Mayor Steve Fulop, claims the changes are meant to close loopholes in the current law and not to target Fulop. In the past, Fulop’s donors have received large contracts with the city Municipal Utilities Authority, an autonomous agency not bound by current pay-to-play rules. Fulop is also rumored to be considering a 2017 gubernatorial run.

Yun submitted his proposal to corporation counsel for review and hopes to receive initial approval from council at its July 13 meeting.

Photo of Jersey City by David Jones on Wikimedia Commons.

Lobbying

Massachusetts: “Uber Proves Profitable for at Least One Group – Lobbyists” by Jim O’Sullivan for Boston Globe

Campaign Finance

“Pro-Hillary Group Takes $200K in Banned Donations” by Harper Neidig and Jonathan Swan for The Hill

Maine: “Maine Ethics Panel Aims to Close Loophole ‘You Could Drive a Truck Through’” by Darren Fishell for Bangor Daily News

New Jersey: “Proposed Pay-to-Play Reforms Pit Fulop Against Longtime Foes” by Terrence McDonald (Jersey Journal) for Newark Star-Ledger

Ethics

California: “Supervisors Approve Budget and Staffing Plan for Ethics Commission” by Nick Gerda for Voice of OC

California: “At the Corner of Power and Poverty” by Laurel Rosenhall for CALmatters

Massachusetts: “Grand Jury Indicts Second Official in Boston Mayor Marty Walsh’s Administration” by Gintautas Dumcius for MassLive.com

New York: “Ethics Reform Brings Less Information About JCOPE Probes” by Chris Bragg for Albany Times Union

Oregon: “Lawmaker’s Actions Questioned by Portland Police Officer” by Gordon Friedman for Salem Statesman-Journal

Elections

Utah: “Two Transgender Candidates – Both Named Misty – Just Made History by Winning Primaries” by Amber Phillips for Washington Post

The D.C. Council has preliminarily approved a bill that will bring more transparency and accountability to the government procurement process. Among other structural and procedural reforms, the measure establishes the Office of the Ombudsman for Contracting and Procurement.

The bill will need approval at a second reading before it is sent to the Mayor. A stricter reform measure that included a one year pay-to-play restriction failed to pass.

A group of current and past politicians have announced an initiative to strengthen ethics laws in Miami-Dade County.

The group, named An Accountable Miami-Dade, is leading the charge to place a measure on the November ballot. The measure would strengthen enforcement of existing campaign finance laws, create pay-to-play restrictions on large contractors, create a ban on gifts from lobbyists, and institute a $250 per-election contribution limit to mayoral and commission candidates.

An Accountable Miami-Dade is headed by Monica Russo, president of the SEUI Florida Council, and Bettina Rodriguez, a former mayor of Doral. It also includes several local officeholders and party leaders.

The State Board of Elections has proposed new pay-to-play disclosure rules and regulations.

The board seeks to align current rules with the recent legislative change requiring business entities to disclose contributions of certain subsidiaries, even if those subsidiaries do not have contracts with the state. In addition, the new regulations would increase the amount of time a vendor has to file the initial contribution disclosure form and would clarify internal disclosure obligations and processes for vendor employees and CEOs under current state law.

The proposed rules and regulations remain open for public comment through May 30, 2016.

Gov. Larry Hogan signed a pay-to-play bill, amending campaign finance reporting requirements for filers doing public business. House Bill 112 requires filers disclosing contributions to also include contributions of any subsidiary entity the filer owns or controls by 30 percent or more, regardless of whether the subsidiary is doing public business in Maryland.

A limited exception exists for publically-traded banking institutions not owned or controlled by anyone in excess of 10 percent if they are not contracted with Maryland in connection with public business.

The law takes effect October 1, 2016.

Lobbying

“Lobbyists Capitalize on Election Scramble” by Megan Wilson for The Hill

Alabama: “Muslim Activists from Alabama See the Capitol’s Sights, but Not Their Delegation” by Abigail Hauslohner for Washington Post

Campaign Finance

“Gyrocopter Pilot Who Landed at U.S. Capitol Sentenced to Four Months in Prison” by Spencer Hsu for Washington Post

Florida: “With Uncertainty at Top of Ticket, Republicans Back Off in Some States” by Jonathan Martin for New York Times

Maryland: “Fundraising Ban Loophole Allows Some Maryland Lawmakers to Take Lobbyist Cash” by Fenit Nirappil for Washington Post

New Jersey: “Birdsall CEO Gets 4 Years in Huge N.J. Pay-to-Play Scheme” by S.P. Sullivan (NJ Advance Media) for Newark Star-Ledger

Ethics

“Senate Backs Ethics Panel Plan That’s Seen as Too Little, Too Late” by Mark Johnson for VTDigger.org

Missouri: “State Lawmakers Send Ethics Bills to Governor” by Summer Ballentine (Associated Press) for Springfield News-Leader

Pennsylvania:”Mike Fleck, Allentown Mayor’s Adviser, Friend Charged in FBI Probe” by Emily Opilo and Peter Hall for Allentown Morning Call

Indiana: “Indiana Lawmaker Defends Taking Family on California Trip” by Brian Slodysko (Associated Press) for Sacramento Bee

Elections

“Special Election Results Buoy Hope for Reform” by David Howard King for Gotham Gazette

“Pro-Hillary Super PAC to ‘Correct’ Reddit and Facebook” by Steven Klett for Epoch Times

Lobbying

Massachusetts: “Bill Would Have Lobbyists Disclose Clients” by Michael Norton (State House News Service) for The Sentinel & Enterprise

Campaign Finance

“Jeb Bush’s Ambitions Paid Dividends for GOP Admaker Over the Years” by Matea Gold for Washington Post

California: “California’s Ethics Watchdog Opposes Donor Stickers for Politicians” by Alexei Koseff for Sacramento Bee

New Jersey: “Another Birdsall Exec Pleads Guilty, Faces Jail” by Kathleen Hopkins for Asbury Park Press

Ethics

Pennsylvania: “Menendez’s Lawyers Argue That Public Corruption Case against Senator Should Be Thrown Out” by Matt Zapotosky for Washington Post

District of Columbia: “Ethics Group Urges Inquiry of Mortgage Banking Lobbyist Who Led F.H.A.” by Gretchen Morgenson for New York Times

New Mexico: “Governor OKs Upgrades to State’s Campaign Finance Reporting System” by Heath Haussamen for New MexicoPolitics.net

Oklahoma: “Credit Card Purchases, Gifts Questioned by Oklahoma’s State Audit” by Randy Ellis for The Oklahoman

Elections

“How America’s Dying White Supremacist Movement Is Seizing on Donald Trump’s Appeal” by Jonathan Mahler for Washington Post

“Inside the Clinton Team’s Plan to Defeat Donald Trump” by Amy Chozick and Patrick Healy for New York Times

“Donald Trump Overwhelms G.O.P. Rivals from Alabama to Massachusetts” by Alexander Burns and Jonathan Martin for New York Times

“Minority Voters Push Hillary Clinton to Victories” by Patrick Healy and Amy Chozick for New York Times

Legislative Issues

Wyoming: “‘Leg’-Mart’ Growing on Wyoming Lawmakers, Public” by Laura Hancock for Casper Star-Tribune

Attorney General Karl A. Racine proposed a new bill to close the current loophole allowing unlimited donations to political action committees (PACs) in non-election years. The bill also contains a pay-to-play provision creating a two-year period of ineligibility for “high value” city business for any company that contributes to a candidate or elected official.

The legislation comes after public concern raised last year when Mayor Muriel E. Bowser’s PAC received unlimited contributions from businesses seeking contracts from her administration.

State and Federal Communications hosted the first of a series of free government relations compliance webinars for 2016. President and CEO Elizabeth Bartz and Amber Fish Linke, Director of Client and Product Operations, presented the widely attended “Lobbying Compliance at the State Level” webinar on Wednesday, February 17, 2016. If you are interested in participating in our future webinars, contact us at training@stateandfed.com!

Q. I want to contribute to an acquaintance in Maryland.  I know there are pay-to-play restrictions.  What are my personal limitations?

A. Is your company “doing public business” with the state of Maryland?  “Doing public business” means having a single contract (an agreement in any form entered into by a governmental entity for a procurement) with a single governmental entity involving cumulative consideration of at least $200,000.  Governmental entity means: (1) the State, a county, a municipal corporation, or other political subdivision of the State; and (2) a unit of the State, a county, a municipal corporation, or other political subdivision of the State.

Contributions in Maryland are still permissible even though your employing organization is doing public business.  The issue is not permissibility, but whether disclosure is required.  If you are an officer or director and the contribution is $500 or more, it must be disclosed.

• Director is a member of the board of directors of a business entity
  [M.C.E.L. §14-101(g)].
• Officer includes an individual who serves as a business entity’s chief executive officer, president, vice president, secretary, treasurer, chief financial officer, managing partner, managing member, or principal or in any other formal or informal role in which the individual exercises substantial independent responsibility for managing the affairs of a business entity [M.C.E.L. §14-101(k)].

If you fall into either category, disclosure is required to the Board of Elections on May 31 and November 30.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Today, the Municipal Securities Rulemaking Board (MSRB) announced new pay-to-play regulations, extending current pay-to-play rules to municipal advisors, including those acting as third-party solicitors. “The integrity of the municipal market will be well-served by regulations to help ensure that all municipal advisors that do business with state and local governments do so based on the merits of their work and not on financial influence,” said MSRB Executive Director Lynnette Kelly in a press release. The new regulations take effect on August 17.

A 2014 Superior Court decision is being reviewed by the San Francisco Ethics Commission. Critics of the decision argue it created a loophole wherein money a candidate raised via a general purpose committee can be used to elect or defeat candidates for other offices.

Further, the decision allows candidates and officeholders to skirt contribution limits and raise money from sources that would otherwise be prohibited.

The San Francisco Ethics Commission is being urged to consider regulations that would prevent candidates from circumventing the rules.

On January 5, California legislators introduced a bill with pay-to-play implications. Sen. Jerry Hill introduced a bill forbidding members of the state Board of Equalization from acting on any tax matters involving donors who had given any amount of money to their political campaigns in the previous 12 months.

Hill and his fellow lawmakers are concerned about a loophole that currently exists allowing companies with an interest in board decisions to skirt the limit.

The bill is now being considered in committee.

Photo of Sen. Jerry Hill by Dave on Wikimedia Commons.