November 7, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance Alaska: “Group Wins Landmark Case Against Super PACs in Alaska” by Jacob Walinsky for ValueWalk California: “SF Voters Pass Prop. F, the ‘Sunlight on Dark Money’ Measure” by Trisha Thandani for San Francisco Chronicle North Carolina: “Senate Leader […]

October 18, 2019 • Written by Jim Sedor

News You Can Use Digest – October 18, 2019

National/Federal After Arrest of Giuliani Associates, FEC Chair Says Commission Struggling to Enforce Rules The Hill – Justin Wise | Published: 10/14/2019 FEC Chairperson Ellen Weintraub lamented the agency’s inability to enforce campaign finance law, saying in an interview there “may […]

National/Federal

After Arrest of Giuliani Associates, FEC Chair Says Commission Struggling to Enforce Rules
The Hill – Justin Wise | Published: 10/14/2019

FEC Chairperson Ellen Weintraub lamented the agency’s inability to enforce campaign finance law, saying in an interview there “may well be a lot of money that is slipping into our system that we just don’t know about.” Her remarks came in the wake of the campaign finance violation charges leveled against two associates of Rudolph Giuliani, President Trump’s personal attorney. Florida businesspeople Lev Parnas and Igor Fruman were arrested and accused of orchestrating a straw donor scheme that funneled money to numerous Republican committees, including a $325,000 contribution to a pro-Trump super PAC.

Appeals Court Rules Against Trump Over His Financial Data
Anchorage Daily News – Ann Marimow, Spencer Hsu, and David Fahrenthold (Washington Post) | Published: 10/11/2019

Congress can seek eight years of President Trump’s business records from his accounting firm, a federal appeals court ruled in one of several legal battles over access to the president’s financial data. The U.S. Court of Appeals for the District of Columbia Circuit upheld Congress’s broad investigative powers and rejected the president’s bid to block lawmakers from subpoenaing the documents. The case is one of several clashes between the Democrat-controlled House and the Republican president over Trump’s data that is expected to reach the U.S. Supreme Court. In this case, the judges ruled Trump’s arguments, that the subpoenas were invalid because Congress lacked a “legitimate legislative purpose” for its subpoenas, were incorrect.

Biden’s New Ethics Plan Includes Constitutional Amendment to Publicly Finance Elections
NBC News – Mike Mernoli | Published: 10/14/2019

Seeking to turn the page from what he called the most corrupt administration in American history, former Vice President Joe Biden rolled out a new comprehensive ethics plan that includes a constitutional amendment to publicly finance elections. It also calls for a ban on lobbying by foreign governments and stricter protocols to ensure a firewall between the White House and prosecutorial decisions at the Justice Department. The proposal comes as Biden is under assault from President Trump and his allies over unsubstantiated allegations that he acted as vice president to shield his son from an investigation of a Ukrainian energy company whose board he served on.

Democratic Lobbyists Bristle at Party’s Attack on K Street
The Hill – Alex Gangitano | Published: 10/16/2019

With presidential candidates like U.S. Sens. Elizabeth Warren and Bernie Sanders calling for tougher rules on how the lobbying world works, Democratic lobbyists find themselves walking a difficult tightrope. The lobbying industry has pushed back on those proposals as unconstitutional, arguing they would be a restriction on First Amendment rights. Democratic lobbyists said while those proposals may be intended to target K Street'[s biggest spenders, they could also silence voices for progressive causes. A persistent argument against tougher restrictions on lobbying is they would lead to more so-called shadow lobbyists, those who do lobbying work but do not register.

Department of Justice’s Lobbyist Registry Available, but with Technical Issues
The Weekly – Giovanna Garofalo | Published: 10/16/2019

Puerto Rico’s lobbyist registry is now available for the general public to use. The registry is essentially a table that will list lobbyists under their name, number of registrations, clients who they represent, and authorized staff. When visitors access the page now, they will realize that it does not feature a single lobbyist. The Department of Justice and the Puerto Rico Innovation and Technology Service are still ironing out technical issues with the registry.

FEC Chairwoman Says She ‘Will Not Be Silenced’ after Republican Lawmaker Requests Ethics Investigation
CNN – Kaatina Iyer | Published: 10/10/2019

FEC Chairperson Ellen Weintraub said she “will not be silenced” after a Republican member of Congress requested that she be investigated for ethics violations for her public statements. Rep. Rodney Davis, who was named an honorary state chairperson for President Trump’s reelection campaign, sent a letter to FEC Inspector General Christopher Skinner, asking him to investigate Weintraub’s “refusal … to recuse herself” from any matters involving the president. He argued that Weintraub’s public statements regarding Trump on Twitter undermines her nonpartisan position.

Fourth Defendant in Giuliani Associates’ Case Arrested at New York Airport
Stamford Advocate – Devlin Barrett (Washington Post) | Published: 10/16/2019

David Correia, the fourth defendant in a campaign finance case involving business associates of President Trump’s personal lawyer Rudolph Giuliani, was arrested at a New York City airport. Correia has been charged with participating in a scheme to use foreign money to build political support for a fledgling recreational marijuana business in Nevada and other states, according to an indictment that also charged Lev Parnas and Igor Fruman with conspiracy and making false statements to campaign finance regulators. The third defendant in the case, a California man named Andrey Kukushkin, was arrested recently, according to authorities.

Giuliani Is Said to Be Under Investigation for Ukraine Work
MSN – Michael Schmidt, Ben Protess, Kenneth Vogel, and William Rashbaum (New York Times) | Published: 10/11/2019

An investigation by federal prosecutors into President Trump’s personal lawyer Rudolph Giuliani is tied to the case against two of Giuliani’s associates who were arrested recently on campaign finance related charges. The associates were charged with funneling illegal contributions to a member of Congress whose help they sought in removing the American ambassador to Ukraine, Marie Yovanovitch. Giuliani has denied wrongdoing, but he acknowledged he and the associates worked with Ukrainian prosecutors to collect potentially damaging information about Yovanovitch. Federal law requires American citizens to disclose any contacts with the government or media in the U.S. at the direction or request of foreign politicians or government officials.

Giuliani Pressed for Turkish Prisoner Swap in Oval Office Meeting
MSN – Jo Becker, Maggie Haberman, and Eric Lipton (New York Times) | Published: 10/10/2019

During an Oval Office meeting with President Trump and Secretary of State Rex Tillerson in 2017, Rudolph Giuliani pressed for help in securing the release of a jailed client, an Iranian-Turkish gold trader, as part of a potential prisoner swap with Turkey. Giuliani’s request provoked an immediate objection from Tillerson, who argued it would be highly inappropriate to interfere in an open criminal case. In the end, no such prisoner swap took place. But the episode has opened a new chapter in Giuliani’s efforts to interject himself into the Trump administration’s diplomacy while at times representing clients with a direct interest in the outcome.

House Readies Bill Aimed at Stopping Foreign Election Interference
Courthouse News Service – Brandi Buchman | Published: 10/16/2019

House lawmakers are pushing for the passage of a third bill to protect the integrity of U.S. elections, with the latest piece of legislation aimed at closing loopholes that allow foreign nationals to spend money on American campaigns. The Stopping Harmful Interference in Elections for a Lasting Democracy Act proposes increasing transparency for campaigns, parties, and PACs by requiring them to report any attempt by a foreign government or individual to influence an election to the FEC and the FBI. The bill also requires U.S. campaigns to establish standards for compliance.

How Amazon.com Moved into the Business of U.S. Elections
Reuters – Nandita Bose | Published: 10/15/2019

The expansion by Amazon Web Services (AWS) into state and local elections has gathered steam since the 2016 U.S. presidential vote. More than 40 states now use one or more of Amazon’s election offering. So do the two main political parties, former Vice President Joe Biden, and the FEC. While it does not handle voting on election day, AWS, along with a network of partners, now runs state and county election websites, stores voter registration rolls and ballot data, facilitates overseas voting by military personnel, and helps provide live election-night results. The company’s efforts are welcomed by election administrators, who in interviews said they often struggle with keeping outdated systems up to date at the local level.

Never-Before-Seen Trump Tax Documents Show Major Inconsistencies
ProPublica – Heather Vogell | Published: 10/16/2019

Documents obtained by ProPublica show stark differences in how Donald Trump’s businesses reported some expenses, profits, and occupancy figures for two Manhattan buildings, giving a lender different figures than they provided to New York City tax authorities. The discrepancies made the buildings appear more profitable to the lender, and less profitable to the officials who set the buildings’ property tax. The discrepancies are “versions of fraud,” said Nancy Wallace, a professor of finance and real estate at the University of California-Berkeley. “This kind of stuff is not OK.” Two former Trump associates, Michael Cohen and Paul Manafort, are serving prison time for offenses that include falsifying tax and bank records, some of them related to real estate.

Rep. Elijah Cummings, Democratic Leader and Regular Trump Target, Dies at 68
MSN – Jenna Portnoy and Antonia Farzan (Washington Post) | Published: 10/17/2019

U.S. Rep. Elijah Cummings, who gained national attention for his principled stands on politically charged issues in the House, his calming effect on anti-police riots in Baltimore, and his forceful opposition to the presidency of Donald Trump, died on October 17. He was 68 years old. Cummings served as chairperson of the Congressional Black Caucus and then ranking member chair of what became the House Oversight and Reform Committee. He became a leading voice against the Trump administration’s efforts to add a citizenship question to the 2020 Census. He was also a forceful opponent of an immigration policy that separated thousands of children from their parents after they illegally crossed the southern U.S. border. Cummings spearheaded probes into security clearances issued by the White House and payments made during the 2016 campaign to silence women who claimed to have had affairs with Trump.

Those Foreign Business Ties? The Trump Sons Have Plenty Too
ENM News – Eric Lipton, Steve Eder, and Ben Protess (New York Times) | Published: 10/11/2019

For the children of the politically powerful, personal business and public dealings can often be indistinguishable, especially when private projects depend on foreign governments that are looking to bolster ties with Washington. As the president has become embroiled in a scandal involving his interactions with Ukraine, Donald Trump Jr. and his brother Eric have taken to attacking Hunter Biden, the son of former Vice President Joe Biden, for his business dealings in Ukraine and China. The brothers have accused him of leveraging his family name for personal gain while his father served in the Obama administration. But the high-profile attack roles being played by President Trump’s eldest sons have now thrust their own business dealings into the spotlight too. Both sons have operated and promoted the Trump family business overseas during their father’s presidency, even as he retains ownership.

Trump Emoluments Case Over His D.C. Hotel Gets Second Chance in Legal Challenge
Connecticut Post – Ann Marimow (Washington Post) | Published: 10/15/2019

A federal appeals court order revived a lawsuit claiming President Trump is illegally profiting from foreign and state government visitors at his hotel in Washington, D.C. The U.S. Court of Appeals for the Fourth Circuit agreed to rehear the lawsuit, brought by the attorneys general of Maryland and the District of Columbia, which was dismissed over the summer by a three-judge panel of the court. The brief order set oral arguments before a full panel of judges for December 12 and essentially gives the novel lawsuit, which tests the anti-corruption emoluments provisions of the Constitution, a second chance.

Trump Has Awarded Next Year’s G-7 Summit of World Leaders to His Miami-Area Resort, the White House Said
Washington Post – Toluse Olorunnipa, David Fahrenthold, and Jonathan O’Connell | Published: 10/17/2019

Next year’s G-7 gathering of the leaders of the world’s biggest economies will take place at President Trump’s Doral golf resort outside of Miami. The decision is without precedent in modern American history – the president used his public office to direct a massive contract to himself. Doral provides more revenue to Trump than any other hotel or golf club. But, in recent years, this keystone property has fallen into steep decline, with profits falling 69 percent in three years. Trump is already facing lawsuits for allegedly violating the Constitution’s ban on receiving “emoluments” from foreign governments. By doing this, he could be inviting a huge increase in the very line of business that these lawsuits are scrutinizing.

Ukraine Scandal Snags Pete Sessions’s Congressional Comeback Bid
MSN – Catie Edmondson (New York Times) | Published: 10/10/2019

Former U.S. Pete Sessions, who is seeking a return to Congress, was caught in the fallout of the Ukraine scandal when he was referred to in the indictment of two presidential allies accused of campaign finance allegations. Sessions is described as “Congressman-1” in the indictment of Lev Parnas and Igor Fruman, who were charged with illegally funneling foreign money to American candidates and campaigns. “Congressman-1” is described as having received large campaign contributions from Parnas and Fruman, and whom Parnas asked for help in removing the U.S. ambassador to Ukraine, Marie Yovanovitch.

Violent Spoof Video of Trump Killing His Critics Shows How Memes Have Reshaped Politics
Denver Post – Drew Harwell and Tony Romm (Washington Post) | Published: 10/14/2019

A meme video, a spoof derived from a bloody action film, shown at President Trump’s Miami-area golf resort drew outrage from some for its depiction of Trump shooting journalists and attacking political figures who have been critical of him, both Democrats and Republicans. Some warned the clip and others like it could incite real-world violence. But that outrage also helped ensure the video would be circulated more widely. Becca Lewis, who researches online subcultures and media manipulation for Stanford University, said the video’s sharing showed how such memes have become a potent force for political expression and propaganda. The meme creators, she said, routinely sought mainstream attention for the memes in a way that would make the shocking content seem more and more acceptable.

Warren Dares Facebook With Intentionally False Political Ad
ENM News – Cecilia Kang and Thomas Kaplan (New York Times) | Published: 10/12/2019

U.S. Sen. Elizabeth Warren is playing a game of dare with Facebook. The Democratic presidential candidate bought an ad on the social network that purposefully includes false claims about Facebook’s chief executive, Mark Zuckerberg, and President Trump to goad the social network to remove misinformation in political ads ahead of the 2020 presidential election. “We decided to see just how far it goes,” Warren wrote, calling Facebook a “disinformation-for-profit machine.” Warren’s actions follow a brouhaha over Facebook and political ads in recent weeks. Mr. Trump’s campaign recently bought ads across social media that falsely said Joe Biden offered $1 billion to Ukrainian officials to remove a prosecutor who was overseeing an investigation of a company associated with Biden’s son Hunter.

Warren Targets ‘Big Money’ in Campaigns, Rules Out Donations from Tech and Bank Executives
The Hill – Tal Axelrod | Published: 10/15/2019

U.S. Sen. Elizabeth Warren White House unveiled a sweeping new proposal to eliminate “big money” in politics, taking aim at donations from PACs and urging her fellow presidential contenders to be transparent in their fundraising. Warren said her plan would end the practice of federal candidates taking corporate PAC money and ban foreign corporate influence in American elections. She would also seek to require presidential campaigns to disclose their major donors, bundlers, and finance events and update campaign finance laws to address online political advertising.

From the States and Municipalities

Arizona – Group Trying to Escape Fine for Violating Arizona Campaign Finance Laws
Arizona Daily Star – Howard Fischer (Capitol News Services) | Published: 10/16/2019

A group that spent $260,000 attacking a 2014 foe of Arizona Gov. Doug Ducey in his first gubernatorial race is trying again to escape paying a fine for violating state campaign finance laws. Attorneys for the Legacy Foundation Action Fund contend the Citizens Clean Elections Commission lacked the power to impose a $96,000 fine for the commercials targeting former Mesa Mayor Scott Smith. They say there was no proof the ad was done to advance the political fortunes of anyone else in the Republican gubernatorial primary. Beyond that, the lawyers contend the commission lacks the authority to enforce the campaign finance laws.

Arkansas – Speaking as Taxpayer in TV Ad, Griffin Says; His Appearance Raises Campaign Questions
Arkansas Democrat-Gazette – Alyson Hoge | Published: 10/6/2019

Lt. Gov. Tim Griffin appears in a television advertisement financed by a nonprofit issue advocacy group called Arkansas Competes. The ad will air about two months after Griffin said he will be a candidate for governor in the 2022 election to succeed Asa Hutchinson. Griffin said he is appearing in the ad “as an Arkansas taxpayer deeply concerned about issues facing our state.” Arkansas Competes Director Carl Vogelpohl said the ad would not run afoul of state law. He noted a state Ethics Commission advisory opinion that said if a non-candidate committee organized as a 501 (c) (4) runs issue ads in Arkansas not asking for votes for or against a specific candidate, the committee’s activity would not constitute a contribution or non-monetary contribution under state law.

California – FBI Investigating Whether Sacramento Pot Businesses Paid Bribes to Public Officials
Sacramento Bee – Sam Stanton and Ryan Sabalow | Published: 10/14/2019

The FBI has been investigating whether Sacramento-area marijuana businesses have made payoffs to public officials in the region in exchange for favorable treatment and license approvals. The investigation comes two months after the FBI announced in a podcast that it was “seeing a public corruption threat emerge in the expanding cannabis industry” and asked for any tips involving public corruption and the industry, which generates millions of dollars in revenue and involves licenses that can go for as much as $500,000.

Connecticut – Government for Sale? Lobbyists Spent $32M This Year to Influence Legislative Session
Manchester Journal Inquirer – Eric Bedner and Will Healy | Published: 10/12/2019

More than $32.3 million was spent this year by nearly 1,000 lobbying organizations to push their agendas and try to persuade Connecticut lawmakers into siding with them on key pieces of legislation. Most of that money was spent during the legislative session that ran from January to June. During the 2019 session, the two most lobbied areas of policy involved health care and hospitals and general government, which includes taxes and contracts Peter Lewandowski, executive director of the Office of State Ethics, said the “overwhelming majority” of lobbyists comply with the regulations as the business is mostly “reputation-based.”

Florida – $500 Ethics Fine Against Dennis McDonald Now Upped to $10,000, with Governor’s Reprimand and Censure
FlaglerLive.com; Staff – | Published: 10/10/2019

A three-year-old ethics case against former Flagler County Commission candidate Dennis McDonald could have ended last June with a $500 fine to which he had agreed. Instead, and for lack of answering a few questions and correcting the record, McDonald now faces a $10,000 fine and a public censure and reprimand by the governor. The Florida Ethics Commission meets on October 25 to vote on the case. The commission voted unanimously at its June meeting to reject a settlement with McDonald because he had not corrected the mistakes on his financial disclosure forms, however minor, that had led to the case against him.

Illinois – Caught on Tape: Ex-Ald. Danny Solis sought money from Jerry Reinsdorf group
Chicago Sun-Times – Tim Novak | Published: 10/11/2019

With FBI agents secretly listening in, then-Chicago Ald. Danny Solis was caught on a wiretap four years ago discussing plans to solicit campaign money from a development group whose owners include sports mogul Jerry Reinsdorf, chairperson of the Chicago Bulls and White Sox, that needed his help at City Hall. Michigan Avenue Real Estate Group needed Solis’ approval for a $40 million apartment complex they later built in his ward. During a call, Solis explained, over the worries of an unidentified aide that the developers were still awaiting the alderman’s approval for the project, how he planned to solicit Reinsdorf’s business partner Thomas Meador, for campaign money. Solis wore a wire for nearly two years, secretly recording conversations at City Hall.

Maryland – ‘Maryland Is Very Corrupt’: Charges against former Del. Tawanna Gaines add to state’s corruption history
Baltimore Sun – Elliott Davis (Capital News Service) | Published: 10/17/2019

Former Maryland Del. Tawanna Gaines is scheduled to be arraigned on a federal wire fraud charge. She is charged with using an undisclosed PayPal account to accept donations to her campaign finance committee. Gaines is not alone. The arraignment adds her to the growing list of politicians in the state who have either committed crimes or ethical violations. Gaines is the third Democratic delegate from Prince George’s County alone to be charged or convicted since 2018.

Michigan – Lights Turn Green for Traffic Signal Company That Hired MDOT Director
Detroit Free Press – Paul Egan | Published: 10/14/2019

The Michigan Department of Transportation (MDOT) made a major shift in who supplies its traffic signal control equipment, just as its former director has taken an executive position with the company that benefits from the change. MDOT used to buy all its traffic signal control equipment and software from Siemens Mobility. But that changed last October, the same month Kirk Steudle, who, for the previous 12 years headed up the department, was named senior vice president of Econolite Systems, a Siemens competitor based in California. In October 2018, the state agency changed its specifications to allow the purchase of traffic signal controllers supplied by Econolite in addition to those made by Siemens.

New York – Big Questions Remain for NY’s Public Campaign Finance Plan
AP News – Marina Villeneuve | Published: 10/14/2019

A New York commission began crafting a small-donor public campaign financing system but has yet to tackle big issues such as when the program would launch and how it would be implemented. The system will provide up to $100 million in public financing to candidates for offices such as governor and Legislature who get enough small private donations. The Public Campaign Financing Commission has until December 1 to announce rules that will become law unless lawmakers hold a rare end-of-year special session to reject them.

New York – Loophole Allows People with City Business to Shower Thousands on Candidates Despite Contribution Limits
New York Daily News – Anna Sanders | Published: 10/14/2019

Contributions from people doing business with New York City were restricted in 2007 and a database was created to ensure candidates and donors complied with the law. Lobbyists pushing city policies and seeking municipal contracts for their clients are included. So are top executives and owners of companies who already have contracts and those lobbying the city. But the law allows them to act as bundlers for other donors without the same contribution limits. Critics say the arrangement leaves the door wide open for powerful and well-connected New Yorkers to influence elections and sway politicians in their favor.

New York – New York Can Now Bring Charges Against Presidential Pardon Recipients
Politico – Bill Mahoney | Published: 10/16/2019

Gov. Andrew Cuomo signed legislation that will let New York prosecutors bring charges against individuals who have received presidential pardons for related crimes. The bill was explicitly written to address fears that President Trump might use his pardon power to interfere with criminal investigations. The U.S. Supreme Court has found the constitutional prohibition on double jeopardy does not apply to the states. It does not bar state prosecutors from bringing charges against individuals who have already been tried on similar federal crimes. But New York’s existing law included additional safeguards that prohibited these second trials.

North Carolina – Solar Group Solicits Campaign Cash for Top Lawmaker, Tied Directly to Legislative Action
WBTV – Nick Ochsner | Published: 10/16/2019

A solar industry group solicited campaign contributions for a North Carolina legislator in an email to its members and tied the request for funds directly to action he had taken days earlier on a bill opposed by the group. The request came from the North Carolina Clean Energy Business Alliance on behalf of state Rep. John Szoka, chairperson of the House Committee on Energy and Public Utilities. Chris Carmody, the executive director of alliance, asked the organization’s members to donate to Szoka up to $5,200, the maximum contribution allowed under the law. The email noted Szoka and a second lawmaker for their opposition to Senate Bill 559, which would authorize Duke Energy to set energy rates for a multi-year period with relaxed oversight from state regulators.

North Dakota – North Dakota Ethics Commission Receives First Complaint
Bismarck Tribune – Jack Dura | Published: 10/10/2019

North Dakota’s new Ethics Commission has received its first complaint, but its details are not immediately available. The commission, which has met only twice, does not yet have investigative procedures for handling complaints. The panel’s next meeting agenda includes items such as establishing a website and office space and writing job descriptions for hiring staff. The commission may write and adopt rules related to transparency, elections, lobbying, and corruption, but it has yet to begin or even broach a rule-making process.

Ohio – The Right Way for a State to Purge Voters Might Be to Show How Wrong It Is
ENM News – Nicholas Casey (New York Times) | Published: 10/14/2019

Ohio is a battleground state and the site of some of the country’s strictest voting laws, from voter ID requirements to a “use-it-or-lose-it” provision that lets officials drop voters seen as inactive. That has led critics to contend parts of the state are regularly disenfranchised, largely in purges aimed at those who have died or moved away, but which also hit real voters who do not learn they cannot vote until Election Day. Rather than purge the voter rolls behind closed doors as had been done in the past, the state released the full list and gave it to advocacy groups to check. The groups said they found the list was riddled with errors. Around 40,000 people should not have been on it, the state determined. One of the names to be purged as an inactive voter was Jen Miller, director of the League of Women Voters of Ohio.

Rhode Island – Facing Penalties, IGT Discloses $776K More Was Spent in Push for New Contract
Providence Journal – Katherine Gregg | Published: 10/16/2019

Facing potential penalties of up to $5,000 and revocation of its right to lobby in Rhode Island, lottery giant IGT and an affiliate have now publicly disclosed a total of $1.2 million in spending in July, August, and September on the company’s campaign for a no-bid, 20-year contract extension to provide the technology and machines for the Rhode Island Lottery, a state-run entity that produced $397 million in revenue last year. While the company disclosed the $129,000 it paid a dozen lobbyists between July 1 and September 30, it had not disclosed how much it paid its public-relations consultants, advertisers, and affiliates to try to win public and legislative support for the contract extension.

South Carolina – SC Supreme Court Justices Grill Special Prosecutor in Quinn Public Corruption Case
The State – John Monk | Published: 10/15/2019

South Carolina’s five Supreme Court justices fired question after question at special prosecutor David Pascoe about why he wanted to undo the conviction and no-prison sentence of ex-state Rep. Rick Quinn Jr. in a high-profile public corruption case. At the heart of Pascoe’s argument was his claim that the judge who sentenced Quinn erred in allowing Quinn to plead guilty to what Pascoe asserted was a non-crime. The Supreme Court overturning the conviction could allow either a new trial or a guilty plea to a lawful charge, Pascoe has said in briefs on the case.

Texas – Dallas Council Member Violated City Code with VisitDallas Tickets, Ethics Commission Says
Dallas News – Hayat Norimine | Published: 10/15/2019

Dallas City Councilperson Casey Thomas violated the ethics code by failing to disclose over $1,600 worth of event tickets he received from VisitDallas, the city Ethics Advisory Commission said. Ahead of the commission’s vote, Thomas promised to recuse himself from any votes related to VisitDallas, the city’s tourism bureau, for the remainder of his term. He also said he fixed procedures with his staff to ensure the mistake would not happen again. The code of ethics on gifts states that city officials should not accept an item that “is intended to influence or reward” decisions and must file financial disclosure forms for any gift that exceeds $250 within a month of accepting it.

Texas – Texas GOP Speaker Tape: Lawmaker ‘vile,’ Trump ‘killing us’
AP News – Paul Weber and Clarice Silber | Published: 10/15/2019

A secretly recorded audio tape of Texas House Speaker Dennis Bonnen seeking help to oust members of his own Republican Party and profanely disparaging a Democratic House member, along with and other political scheming, has thrown the GOP-controlled Legislature into disarray at a fragile moment when their majority is at stake. The tape has uncorked the biggest political scandal in the state in years. Democrats filed a lawsuit accusing Bonnen of breaking campaign finance laws during the meeting with the head of a conservative group called Empower Texans, which has spent lavishly in pursuit of pulling the Legislature far to the right on issues such as abortion and guns. State investigators responsible for looking into allegations of corruption by public officials have also opened a case.

Virginia – A Virginia Beach Republican Says Democrats Gave His Campaign $44,000. Here’s What’s Going On.
The Virginian-Pilot – Marie Albiges | Published: 10/16/2019

A Republican delegate trying to hold onto his Virginia House seat says his Democratic opponent’s attack mailers have actually benefited his campaign, so much so that he is reporting them as a $44,000 in-kind contribution in official records submitted to the state. Davis said he feels a “legal obligation” to report the donation. The stunt in reality is a creative way to frame what is shaping up to be a close race as Democrats try to flip enough seats to seize control of the General Assembly, said Robin Cooperman, a political science professor at the University of Mary Washington. “It’s political theater, to be sure,” Cooperman said.

Wyoming – Wyoming Utility Regulator Copied, Sent Coal Lobby Letter
WyoFile.com – Andrew Graham | Published: 10/15/2019

The Wyoming Public Service Commission (PSC), in concert with five equivalent bodies from other states, recently asked the Federal Energy Regulatory Commission (FERC) to accelerate an inquiry that could subsidize coal plants in the name of electrical grid reliability. The letter of request appears to have been drafted, in part, by a coal industry lobbying group and passed through by the PSC. Emails obtained by the Energy and Policy Institute through a public records request show three paragraphs of PSC Chairperson Karen Forstrom’s letter match a model letter a representative of the American Coalition for Clean Coal Electricity provided to West Virginia public service commissioners on July 30.

October 15, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance New York: “Loophole Allows People with City Business to Shower Thousands on Candidates Despite Contribution Limits” by Anna Sanders for New York Daily News Elections National: “Warren Dares Facebook With Intentionally False Political Ad” by Cecilia Kang and […]

October 9, 2019 • Written by George Ticoras, Esq.

Canada’s Government Contracts Regulations Requires Declaration: No Frauds Committed

Temporary Canadian House of Commons in Ottawa, Ontario, Canada

Bidders attempting to contract with the Canadian federal government are required to certify they have not committed crimes of fraud or acts of corruptions. Recent amendments to the Government Contracts Regulations require a bidder declare he or she has not, […]

October 4, 2019 • Written by Jim Sedor

News You Can Use Digest – October 4, 2019

National/Federal A Trump Hotel Mystery: Giant reservations followed by empty rooms Politico – Anita Kumar | Published: 10/2/2019 House investigators are looking into an allegation that groups, including at least one foreign government, tried to ingratiate themselves to President Trump by […]

National/Federal

A Trump Hotel Mystery: Giant reservations followed by empty rooms
Politico – Anita Kumar | Published: 10/2/2019

House investigators are looking into an allegation that groups, including at least one foreign government, tried to ingratiate themselves to President Trump by booking rooms at his hotels but never staying in them. It is a previously unreported part of a broader examination by the House Oversight Committee, included in the Democrats’ impeachment inquiry, into whether Trump broke the law by accepting money from U.S. or foreign governments at his properties. The so-called emoluments clause of the Constitution forbids Trump from profiting from foreign governments, or from receiving any money from the U.S. government aside from his annual salary.

Barr Personally Asked Foreign Officials to Aid Inquiry into CIA, FBI Activities in 2016
MSN – Devlin Barrett, Shane Harris, and Matt Zapotosky (Washington Post) | Published: 9/30/2019

Attorney General William Barr held private meetings overseas with foreign intelligence officials seeking their help in a Justice Department inquiry that President Trump hopes will discredit U.S. intelligence agencies’ examination of possible connections between Russia and members of the Trump campaign during the 2016 election. Barr’s personal involvement is likely to stoke further criticism from Democrats pursuing impeachment that he is helping the Trump administration use executive branch powers to augment investigations aimed primarily at the president’s adversaries. Current and former intelligence and law enforcement officials expressed frustration and alarm that the head of the Justice Department was taking such a direct role in reexamining what they view as conspiracy theories and baseless allegations of misconduct.

Chris Collins Enters Guilty Plea in Insider Trading Case
Roll Call – Chris Marquette | Published: 10/1/2019

Former U.S. Rep. Chris Collins pleaded guilty to insider trading charges, ending a congressional career that pushed the House to craft rules prohibiting members from serving on public company boards. Collins pleaded guilty to two of eight counts he was charged with: conspiracy to commit securities fraud and false statements to the FBI. Collins sat on the board of directors for biotechnology company Innate Immunotherapuetics and was also one of its largest shareholders. Collins did not trade himself and his Innate stock declined by millions of dollars when the company’s failed drug trial results were publicly revealed. But he provided the insider trading information to his son, who then relayed it to others.

Dems Seek Lobbyist Cash to Fund Milwaukee Convention
Politico – Maggie Severns and Theodoric Meyer | Published: 9/29/2019

Two top operatives planning the Democratic Party’s 2020 convention in Milwaukee went to K Street to pitch lobbyists on their plans for the $70 million event. Against the backdrop of the Democratic primary, it was an awkward pairing – representatives for special interests meeting with top Democrats while the party’s leading presidential candidates reject corporate PAC and lobbyist money. But Democratic National Committee officials explained during the meeting how corporations can help foot the bill for the convention, regardless of who the nominee is, addressing some lobbyists’ worries that a crusading left-wing nominee like Bernie Sanders or Elizabeth Warren could try to reject corporate money, embarrassing convention sponsors.

Elections Chief Says a GOP Colleague Blocked Wide Release of Her Foreign Activity
MSN – Alex Horton (Washington Post) | Published: 9/28/2019

The FEC posts the latest in election regulatory activity in a weekly digest. That was until the last week, after what FEC Chairperson Ellen Weintraub said was Republican Commissioner Caroline Hunter’s effort to block a draft memo on prohibited foreign national electoral activity from being included in the digest, which led to the digest being withheld from the public. But Weintraub found a way to get the information out. She published the digest piecemeal, with 57 tweets in all, including the foreign national prohibitions memo – all while calling out the commissioner who Weintraub said sought to block it from being widely publicized online. Hunter said she merely asked Weintraub for time to evaluate the document before it was included in the digest.

Ericsson Sets Aside $1 Billion to Pay for Ethics Breaches in Six Countries
Dallas News – Dave McCombs and Niklas Magnusson (Bloomberg) | Published: 9/26/2019

Swedish telecommunications equipment giant Ericsson said it expects to pay more than $1 billion to resolve investigations by U.S. authorities into business ethics breaches in six countries in one of the costliest corruption cases on record. Ericsson has said the probe related to a payment system used to win contracts in the 1990s. The Foreign Corrupt Practices Act prohibits American companies and overseas firms with stocks trading on U.S. exchanges from paying bribes to foreign officials.

Impeachment Inquiry Puts New Focus on Giuliani’s Work for Prominent Figures in Ukraine
Laredo Morning Times – Rosalind Helderman, Tom Hamburger, Paul Sonne, and Josh Dawsey (Washington Post) | Published: 10/2/2019

The hunt by President Trump’s attorney Rudolph Giuliani for material in Ukraine damaging to Democrats has put a spotlight on business ties he has had in the former Soviet republic for at least a decade, work that has introduced him to high-level Ukrainian financial and political circles. Giuliani has said he has been working for free solely to benefit his client, Trump, as he has sought information from Ukrainian officials. House investigators are now seeking records about Giuliani’s past clientele in Ukraine, including Pavel Fuks, a wealthy developer who financed consulting work Giuliani did for the city of Kharkiv. House committees have also requested documents from two of Giuliani’s current clients, Florida-based businesspeople who have been pursuing opportunities in Ukraine for a new liquefied natural gas venture.

Millions on Lobbying Will Cost Policy Influencers Under Warren
Courthouse News Service – Amanda Ottaway | Published: 10/2/2019

U.S. Sen. Elizabeth Warren announced a plan to “end lobbying as we know it” with a proposed tax on any corporation or organization that spends more than $500,000 annually in lobbying the federal government. Her plan calls for a 35 percent tax rate on corporations and trade organizations spending between $500,000 and $1 million on lobbying, 60 percent for those spending between $1 million and $5 million, and 75 percent on all spending over $5 million. “Corporate lobbyists are experts at killing widely popular policies behind closed doors,” Warren wrote in announcing the proposal.

Odd Markings, Ellipses Fuel Doubts About the ‘Rough Transcript’ of Trump’s Ukraine Call
MSN – Carol Leonnig, Craig Timberg, and Drew Harwell (Washington Post) | Published: 10/2/2019

President Trump said his controversial July call with Ukraine President Volodymyr Zelensky was transcribed “word-for-word, comma-for-comma,” an assertion that fueled growing questions about the nature and completeness of an official memorandum about the call released by the White House. Administration officials previously had portrayed the document as not a verbatim transcription but rather a summary that closely tracked the words Trump used in his July 25 call with Zelensky. The whistleblower complaint that spurred an impeachment investigation described an “official word-for-word transcript” of the call, words closely matching the ones used by Trump recently, creating uncertainty about what was included in the document the White House released previously and what may have been left out.

Pompeo Acknowledges He Listened in On Trump’s Ukraine Call
AP News – Matthew Lee | Published: 10/2/2019

Secretary of State Mike Pompeo publicly acknowledged for the first time he was on the July 25 phone call in which President Trump pressed Ukraine’s president to investigate political rival Joe Biden. The disclosure puts a spotlight on his previous attempts to distance himself from the call at the center of the impeachment inquiry, in which the State Department prominently figures. In a September 22 interview with ABC News, Pompeo deflected questions about his involvement. Asked then “what do you know” about the conversations between Trump and the president of Ukraine, Pompeo said he had not seen the whistleblower complaint and went on to talk about how the U.S. has provided military support to the government of Ukraine in its fight with Russia-backed separatists.

RNC Solicited Money for Trump’s Reelection with Forms That Look a Lot Like the Official Census
MSN – Kim Bellware and Brittany Shammas (Washington Post) | Published: 10/1/2019

Officials in Montana are warning residents for the second time this year about surveys sent by the Republican National Committee that mimic the look of federal census forms, with the goal of soliciting money for President Trump’s reelection campaign. The mailers are labeled “2019 Congressional District Census” and inform recipients they have been “selected to represent Voters” in Bozeman, Montana. The accompanying literature makes repeated requests for donations, urging recipients to send at least $15 to “help pay for the costs of processing [the] Census Document” if they are unable to afford an amount in the requested range of $25 to $1,000. The potentially misleading mailings come as the U.S. Census Bureau is preparing for what is expected to be one of the most challenging federal counts in decades.

The Catholic Church and Boy Scouts Are Lobbying Against Child Abuse Statutes. This Is Their Playbook
USA Today – Marisa Kwiatkowski and John Kelley | Published: 10/2/2019

Since 2009, state lawmakers from both sides of the aisle have tried at least 200 times to extend the civil statute of limitations for child sexual abuse cases. The bills have borrowed from and built on each other, sharing common phrases and ideas. Many special interests, including the insurance industry, oppose efforts to give survivors more time to sue. But two organizations are uniquely positioned to wield influence because of their deep ties to local communities: The Catholic Church and the Boy Scouts of America. Where legislation has been introduced, equally coordinated opposition has followed from the groups that stand to lose the most.

The Interior Secretary Wants to Enlarge a Dam. An Old Lobbying Client Would Benefit.
MSN – Coral Davenport (New York Times) | Published: 9/28/2019

For years, the Interior Department resisted proposals to raise the height of its Shasta Dam in Northern California. The department’s scientists and researchers concluded that doing so would endanger rare plants and animals in the area and devastate the West Coast’s salmon industry downstream. But the project is going forward now, in a win for a powerful consortium of California farmers, the Westlands Water District, that stands to profit by gaining access to more irrigation water from a higher dam and has been trying to get the project approved for more than a decade. For much of that time, the chief lobbyist for Westlands was David Bernhardt. Today, Bernhardt is the Interior secretary. The department said Bernhardt’s ethics pledge when he joined the Trump administration did not prohibit him from decisions about the dam in most instances.

Trump Involved Pence in Efforts to Pressure Ukraine’s Leader, Though Officials Say Vice President Was Unaware of Allegations in Whistleblower Complaint
MSN – Greg Miller, Greg Jaffe, and Ashley Parker (Washington Post) | Published: 10/2/2019

President Trump repeatedly involved Vice President Pence in efforts to exert pressure on the leader of Ukraine at a time when the president was using other channels to solicit information he hoped would be damaging to Joe Biden, current and former U.S. officials said. Officials close to Pence insist he was unaware of Trump’s efforts to press Ukraine President Volodymyr Zelensky for damaging information about Biden and his son, who had served on the board of an obscure Ukrainian gas company, when his father was overseeing U.S. policy on Ukraine. Trump’s deployment of Pence is part of a broader pattern of using both executive authority and high-ranking officials in his administration to advance his personal or political interests, even in cases when those subordinates appear not to know that another agenda is in play.

Watchdog Allowed to Sue on Donor Disclosure After FEC Won’t Act
Bloomberg Government – Kenneth Doyle | Published: 10/1/2019

A judge eased the way for watchdog groups to bypass the gridlocked FEC in a decision allowing a lawsuit seeking to unmask secret donors to a major Republican campaign spending organization. U.S. District Court Judge Christopher Cooper said Citizens for Responsibility and Ethics in Washington (CREW) can pursue an unusual “citizen suit” against the American Action Network (AAN). The AAN has spent tens of millions of dollars aiding Republican congressional candidates but never has revealed any of its donors. The Federal Election Campaign Act allows court challenges when the evenly divided FEC splits along party lines and dismisses an enforcement complaint. This can be an effective way to enforce the law if the FEC will not act, the judge said, denying a motion to dismiss CREW’s lawsuit.

Whistleblower Painstakingly Gathered Material and Almost Single-Handedly Set Impeachment in Motion
Anchorage Daily News – Greg Miller (Washington Post) | Published: 9/27/2019

From the moment he learned about President Trump’s attempts to extract political dirt on former Vice President Joe Biden from the newly elected leader of Ukraine on July 25, the CIA officer behind the whistleblower report moved swiftly behind the scenes to assemble material from at least a half-dozen highly placed, and equally dismayed, U.S. officials. He wove their accounts with other material on everything from the intervention of Rudolph Giuliani in the U.S.-Ukraine relationship to alleged efforts by attorneys in the Office of the White House Counsel to contain or suppress the accruing damage. The document he delivered to the intelligence community’s inspector general is so concerning and factually sound that it has almost single-handedly set in motion the gears of impeachment.

From the States and Municipalities

Arkansas – Arkansas Asks Panel to Toss Challenge to Campaign-Finance Law
Courthouse News Service – Joe Harris | Published: 9/26/2019

An attorney for the state of Arkansas argued before an appeals court that a woman challenging the constitutionality of a state campaign donation law lacks standing to do so because her preferred candidate has not made an official campaign announcement. Peggy Jones filed a federal lawsuit over the law prohibiting campaign donations for statewide offices more than two years before the election. Jones claims the law infringes on her First Amendment rights by preventing her to donate now to politicians she wants to support in the 2022 election cycle. In June, U.S. District Court Judge James Moody Jr. issued an injunction blocking enforcement of the law until its constitutionality could be decided.

California – L.A. Gave Him a $54,750 Consulting Gig. But Did He Do Any Work?
Los Angeles Times – Emily Alpert Reyes and David Zahniser | Published: 10/1/2019

Los Angeles Mayor Eric Garcetti said his office approved a consulting contract in 2016 for Michael LoGrande, the departing head of the city planning department, so LoGrande could finish up work before a new planning director arrived. But when asked by reporters for evidence of the work performed by LoGrande, officials in mayor’s office and the planning department said they had nothing to turn over. LoGrande agreed in July to pay a penalty of more than $281,000 for illegally lobbying the city just months after he left his position. Three of the four violations occurred while he was being paid by the city as a consultant. One City Hall critic said it sounded as though LoGrande had secured a “no show, no work” contract, one that essentially functioned as a severance package.

California – Monterey Slaps Limits on Escalating Campaign Contributions
Monterey Herald – Dennis Taylor | Published: 10/2/2019

The Monterey City Council advanced an ordinance limiting campaign contributions by any person to $500. It defines a “person” as any individual and any number of organizations, such as companies, corporations, committees, and labor unions. The ordinance will come back in two weeks for a second reading and if passed again would become law four weeks after that, said Monterey City Manager Hans Uslar.

California – These California Politicians Once Helped Regulate Legal Marijuana. Now They’re Working for the Industry
Los Angeles Times – Patrick McGreevy | Published: 9/30/2019

A growing number of former government leaders, bureaucrats, and regulators have joined or established financial ties with the multibillion-dollar marijuana industry in the last few years. More than two dozen government officials have made the leap. Most jumped in after voters in 2016 approved Proposition 64, which legalized growing, distributing, and selling cannabis for recreational use. Cannabis firms that need help navigating bureaucracy stand to gain valuable knowledge from enlisting government veterans, said former state Attorney General Bill Lockyer, who is a founder of C4 Distro, a state-licensed distribution firm.

Colorado – Recall Polis Group Gives $11,000 in Gifts to Staffers
Denver Post – Anna Staver | Published: 9/26/2019

The Official Recall of Colorado Gov. Jared Polis group, which did not participate in the recent failed recall attempt by two other group has given $11,000 of the money it raised for the effort as gifts to staffers. According to disclosre records, Shane Donnelley got $5,000 as a “thank you for caring about Colorado” gift, and Lisa Pascoe and Rene McGill both received $3,000. It’s not the first time the group has come under scrutiny for its spending. The group’s chairperson, Juli-Andra Fuentes, was questioned about a nearly $30,000 donation to an independent expenditure committee she founded called Colorado for Trump. The Trump campaign said Fuentes’ group was not affiliated with the campaign, and it might take action over the misleading name.

Delaware – Former Wilmington City Council President Indicted
Wilmington News Journal – Jeanne Kuang and Esteban Parra | Published: 9/30/2019

Former Wilmington City Council President Theo Gregory was indicted on charges of profiteering and official misconduct. The Delaware Department of Justice said Gregory used his position on the council to secure a city grant that would enrich both himself and a nonprofit he founded. In April, Gregory settled a case with the Wilmington Ethics Commission, admitting his actions violated one section of the city code, which prohibits elected officials from using their position for personal monetary gain or to influence others’ behavior. He received a public reprimand. The commission agreed to drop a charge alleging he violated a different part of code, which prohibits officials from using “public office to secure unwarranted privileges, private advancement or gain.”

Florida – After Five Years and an ‘Ugly’ Process, Miami-Dade Is Still Trying to Buy Helicopters
Miami Herald – Douglas Hanks | Published: 10/3/2019

Miami-Dade County has been trying to buy new rescue helicopters for five years, and the purchasing process may be the messiest ever for a county famous for extended procurement fights. It sparked a brief criminal investigation, though no charges were filed. Ethics investigators were far more productive, issuing reports accusing bidder Agusta and administrators in the county’s fire department of flouting rules governing how local governments are supposed to select vendors. The report detailed an “alarming” amount of texts and phone calls between an Agusta sales executive and administrators at the county’s fire department at a time when purchasing rules barred private communication. The report also said it “strains credibility” to believe the communications had nothing to do with Agusta’s bid.

Florida – Mayor Dailey Tears into Independent Ethics Board, Balks at Proposed Ethics Code Overhaul
Tallahassee Democrat – Jeff Burlew | Published: 9/26/2019

A proposal by the Tallahassee Independent Ethics Board to strengthen a voter-approved ethics code long seen as ineffectual came under fire at City Hall, with Mayor John Dailey blasting both the recommended ordinance and the board itself. Dailey grilled Independent Ethics Officer, Julie Meadows-Keefe, and the ethics board chairperson, Richard Herring, over their practices and procedures since the panel’s creation nearly five years ago. Treating them at times almost like hostile witnesses, he asked leading questions, answered his own queries, and apologized several times after cutting the speaker off. Dailey tore away at some of the most significant revisions to the ethics code, a document a year in the making that has sat on the shelf since the board delivered it to commissioners in April.

Iowa – Judge Upholds Voter ID, Strikes Parts of 2017 Voting Law
AP News – David Pitt | Published: 10/1/2019

A judge upheld voter ID as allowable under the Iowa Constitution but struck down as unconstitutional portions of a 2017 voting reform law challenged by a Hispanic civil rights group and an Iowa State University student. The law signed by former Gov. Terry Branstad requires voters to show certain forms of identification when voting at the polls, provide an identification number on absentee ballot applications, and allows county auditors to reject ballots if they believe signatures do not appear to match a voter signature on record.

Kentucky – Hospital Group Cancels Beshear Fundraiser After Saying Donation Would ‘Assure Access’
Lexington Herald-Leader – Daniel Desrochers | Published: 10/1/2019

The Kentucky Hospital Association canceled a fundraiser for the gubernatorial campaign of state Attorney General Andy Beshear a day after it was reported the association was urging members to donate in an effort to “assure access” to whoever wins the race for governor in November. “We cannot predict the outcome of the election but we can assure access to the winner with a strong show of support for each candidate,” Bud Warman, the group’s vice president in charge of member engagement, wrote in an email to members.

Montana – ‘Excessive Lobbying’ by Nonprofit Federal Land Critic Prompts Complaint to IRS
Missoulia Current – Laura Lindquist | Published: 9/30/2019

A Montana nonprofit led by a federal land critic should give up its tax-exempt status because of lobbying activities, according to watchdog groups. The Campaign for Accountability sent a complaint to the IRS claiming Citizens for Balanced Use has repeatedly violated laws that limit the amount of lobbying that tax-exempt nonprofit organizations are allowed to carry out. The IRS does allow lobbying, as long as it is not a “substantial part” of a nonprofit’s activities. But the agency has not defined what qualifies as “substantial.”

Nebraska – Nebraska Lags Behind Neighbors in Campaign Finance Regulation
Hastings Tribune – Tony Herrman | Published: 9/27/2019

Kate High, treasurer of the Nebraska League of Women Voters, delineated how Nebraska lags behind neighboring states in regulating campaign finance. High said she began researching campaign finance rules in her retirement. She said most states as well as the federal government have criminalized what Nebraska has legalized and normalized. High offered a 10-part plan to make elections about voters, not big money interests.

New Jersey – Atlantic City Mayor Frank Gilliam Took $87K from Basketball Club, Pleads Guilty to Wire Fraud
Newark Star Ledger – Joe Atmonavage (NJ Advance Media) | Published: 10/3/2019

A year after an FBI raid on his home, Atlantic City Mayor Frank Gilliam pleaded guilty to wire fraud. Gilliam defrauded a basketball club of more than $87,000, prosecutors said. More than $41,000 was recovered when his house was raided in December 2018. Gilliam said he created AC Starz Basketball Club and opened a bank account for the club. From 2013 to 2018, he admitted soliciting $87,215 in donations on behalf of the club and using them for his personal expenses.

New Jersey – Judge Blocks Implementation of New ‘Dark Money’ Disclosure Law
Burlington County Times – David Levinsky | Published: 10/2/2019

U.S. District Court Judge Brian Martinotti granted a preliminary injunction blocking the implementation of New Jersey’s new disclosure law requiring so-called dark money groups and other nonprofits that engage in political activities and lobbying to reveal their donors. A lawsuit by Americans for Prosperity challenged the law on constitutional grounds, arguing its requirement that 501(c)4 groups must reveal contributors who give more than $10,000 if the group engages in any political activities, lobbying, or campaigning infringes on First Amendment rights and could have a chilling effect on its ability to raise funds. In addition to the donor disclosure, the law also mandates the disclosure of expenses of more than $3,000 and boosted the contribution limits to state and county political committees, which are already subject to strict reporting requirements.

New York – Assemblyman Introduced Bill Pushed by Firm That Paid Him
Albany Times Union – Chris Bragg | Published: 9/29/2019

In the month prior to the introduction of state Assemblyperson Michael Blake’s bill that would have benefitted Airbnb, the short-term rental platform paid $189,000 to a prominent political consulting firm, Hilltop Public Solutions, to assist in its lobbying in New York. Hilltop’s efforts included helping organize grassroots support for the legislation Blake introduced. Publicly unknown at the time was that Blake was being paid by Hilltop as a political consultant. In other words: In 2015, Blake was being paid by Hilltop; Airbnb was paying Hilltop; and Blake introduced legislation Airbnb had been pushing. Blake’s financial disclosure form for 2015 reveals that Hilltop paid Blake between $5,000 and $20,000 to work for “out of state” clients. But Blake insists he never worked for Airbnb.

New York – Cuomo-Backed Lobbying Disclosure Law Struck Down
Albany Times Union – Chris Bragg | Published: 10/1/2019

A New York law that compels tax-exempt organizations involved in issue advocacy campaigns to disclose their financial supporters was struck down by a federal judge. The law required 501(c)(3) charities to disclose all their donors of more than $2,500 over six months if they gave more than $2,500 to substantial lobbying campaigns run out of issue-oriented nonprofits. Another provision required a 501(c)(4) to disclose donors who contribute $1,000 or more when the organization spends more than $10,000 in a calendar year on communications made to at least 500 members of the public concerning political or legislative issues.

North Carolina – Former NC GOP Chairman Pleads Guilty to Lying to FBI
WRAL – Adam Owens | Published: 10/2/2019

Former U.S. Rep. Robin Hayes pleaded guilty to lying to the FBI during an investigation of bribery allegations into a major political donor. As part of the plea deal, conspiracy and bribery charges and two other counts of lying to authorities were dismissed. Hayes, businessperson Greg Lindberg, and two Lindberg associates, John Gray and John Palermo, were accused of trying to bribe North Carolina Insurance Commissioner Mike Causey with up to $2 million in promised campaign donations if Causey would hire Palermo to regulate Lindberg’s insurance businesses. The department was asking a series of financial questions about Lindberg’s insurance businesses at the time. Prosecutors allege some money was funneled through the North Carolina Republican Party to get around state campaign finance laws.

Ohio – Ohio Purge Ends with Most Culled Because They Haven’t Voted
The Fulcrom; Staff – | Published: 10/2/2019

The controversial culling of Ohio’s voter rolls ended after the deletion of another 182,000 registrations, or two percent of the statewide total, in one of the nation’s biggest electoral bellwethers. Most were purged only because they have not voted in six years. Under a state law, upheld by the U.S. Supreme Court last year, non-voter purges are automatic unless individuals ask to stay on the rolls when the state informs them that they are about to be dropped.

Oregon – Oregon Campaign Finance Watchdog Will Seek to Beef Up Enforcement
Portland Oregonian – Mike Rogoway and Rob Davis | Published: 9/24/2019

The secretary of state’s office said it will seek to beef up enforcement of Oregon’s campaign finance laws after a report by The Portland Oregonian that showed minimal investigation into alleged violations. Deputy Secretary of State Richard Vial said the office has settled on a series of steps to review the elections division’s practices and step up enforcement, there was no immediate decision on whether to apply the new practices to past cases. Vial also said there are practical considerations that may continue to limit future investigations.

Oregon – Oregon Legislature Will Consider Bill to Make Public Records Advocate Independent in 2020
Portland Oregonian – Hillary Borrud | Published: 10/1/2019

Oregon’s public records advocate would no longer be appointed by the governor and would have his or her independence clearly spelled out in state law under a proposal that legislators will take up next year. The plan by the Public Records Advisory Council is a response to news in that Gov. Kate Brown’s top lawyer, Misha Isaak, told Public Records Advocate Ginger McCall that she reported to him and should vet any public records legislation, policy proposal, and report with the governor’s office before releasing them. McCall resigned in September. She cited irreconcilable differences with the governor’s staff over role of the public records advocate, including that she felt pressured by the governor’s administration to advance Brown’s public records policy goals without disclosing who was directing that work.

Rhode Island – R.I. Ethics Commission Head Suggests Lightening Rules for Public Officials
Providence Journal – Katherine Gregg | Published: 9/26/2019

Rhode Island Ethics Commission Executive Director Jason Gramitt has suggested reforming the state’s financial disclosure law for public officials, such as a less punitive procedure for dealing with public officials who fail to disclose all of their family’s sources of income, financial holdings, expense-paid trips, and executive positions on boards. “We agree with the Ethics Commission that the current mix of statute and regulations has created a somewhat confusing situation,” said John Marion, executive director of Common Cause Rhode Island. “… [But] any changes to financial disclosure should start with the principle of first doing no harm. The public should not lose any information that it already has access to under the current law.”

Washington – Firm Ordered to Pay More Than $1 Million After Illegally Funneling Money to Initiative Activist Tim Eyman
Seattle Times – Christine Clarridge | Published: 10/1/2019

A judge ordered a signature-gathering firm and its principal to pay $1 million for funneling campaign donations to anti-tax activist Tim Eyman. The ruling is the latest development in a lawsuit that Washington Attorney General Bob Ferguson filed against Eyman, Citizen Solutions LLC, and one of its owners, William Agazarm, accusing the firm and Agazarm of unlawfully concealing a $308,185 payment to Eyman. The attorney general’s office said Eyman created “gift schemes” for Citizen Solutions and its owners to “funnel money” to him. Records also document several $13,000 payments to Eyman and his family members from the owners of Citizen Solutions Inc., a predecessor to the limited liability company.

Washington DC – Metro Board Adopts Revised Ethics Policy in Wake of Evans Scandal
Washington Post – Justin George | Published: 9/26/2019

The Washington Metropolitan Transit Authority (Metro) adopted a revised ethics policy that will make alleged violations and future internal investigations of board members public. The move comes after the panel was widely criticized for its handling of the probe into the conduct of former Metro Chairperson Jack Evans. The new policy removes much of the secrecy that surrounded the Evans investigation and its outcome. An investigation by the board’s ethics committee found Evans had failed to disclose a conflict-of-interest arising from his private consulting work for Colonial Parking, which was paying Evans’ consulting firm $50,000 a year.

Washington DC – There Goes the Neighborhood … to Lobbyists and Fundraisers
Roll Call – Kate Ackley | Published: 10/2/2019

As more K Street shops and political operations buy real estate on Capitol Hill for the proximity to lawmakers, residents say they fear their neighborhoods are morphing into a commercial district, in some cases in violation of zoning regulations and allowing the lobbyist homeowners possibly to pay less in taxes than the business rate. Richard Fiesta, executive director of the Alliance for Retired Americans, and his neighbors, some of whom are also professional lobbyists themselves, have raised their concerns with local officials, who are urging the District of Columbia to investigate potential zoning violations and to clarify the rules. “Every residential house that gets turned into a lobbying headquarters or a fundraising house, it’s one less house that a family can live in,” said city council member Charles Allen.

September 27, 2019 • Written by Jim Sedor

News You Can Use Digest – September 27, 2019

National/Federal Convictions Tossed Out Against Ex-Flynn Business Partner AP News – Michael Barakat | Published: 9/24/2019 A federal judge tossed out convictions against a one-time business partner of former national security adviser Michael Flynn who was accused of acting as a […]

National/Federal

Convictions Tossed Out Against Ex-Flynn Business Partner
AP News – Michael Barakat | Published: 9/24/2019

A federal judge tossed out convictions against a one-time business partner of former national security adviser Michael Flynn who was accused of acting as a Turkish foreign agent. U.S. District Court Judge Anthony Trenga ruled the evidence against Bijan Kian was insufficient to sustain a conviction even though a jury convicted him at a trial earlier this year. Trenga had expressed doubts about the government’s case throughout the trial. Trenga also ordered that Kian should be granted a new trial if an appeals court reverses his decision to grant acquittals. Kian was convicted on a conspiracy count and a count of acting as an unregistered agent of Turkey. At trial, Kian also presented evidence that he had intended to register under the Foreign Agents Registration Act until a lawyer advised him it was unnecessary in his case.

DNC Raises Threshold to Make November Debate Stage
Politico – Zach Montellaro | Published: 9/23/2019

The Democratic National Committee (DNC) has slightly raised the bar to qualify for the November primary debate. The new thresholds represent the DNC’s latest attempt to balance its mandate to cull the field while also facing complaints about excluding candidates with impressive resumes, including sitting senators and governors, who could not meet the previous, lower polling and donor marks. Even some of the major candidates who have appeared in each of the first three debates have been forced to adjust their strategies to boost their poll numbers or trawl for small-dollar donors on Facebook, often spending multiples more to advertise than the money they received in return.

Here’s a Business Plan: Wooing millennials to the polls with prizes, not guilt
The Fulcrom – Bill Theobald | Published: 9/25/2019

Traditionally, voter registration and turnout drives go right for the moral argument. Registering to vote and going to the polls is your obligation in a democracy, the organizers say. But the relatively poor turnout through the years argues for a different approach. Armed with their millennials’ native knowledge of social media, an understanding of behavioral economics from their graduate work as well as their own research, graduate school classmates Jess Riegel and Rachel Konowitz put together a business plan particularly focused on getting younger people to vote.

Justice Department Drops Probe of Mueller-Referred Lobbyists, They Say
San Francisco Chronicle – Tom Hamburger and Matt Zapotosky (Washington Post) | Published: 9/24/2019

A long-running U.S. Justice Department investigation of two of Washington, D.C.’s best-known lobbyists was closed, the latest sign of the challenges facing prosecutors attempting to more aggressively pursue possible violations of the Foreign Agents Registration Act. Tony Podesta and Vin Weber said they were notified that federal prosecutors in Manhattan had closed the inquiry into work they did that benefited Ukrainian interests. As the investigation proceeded, Podesta closed his iconic lobbying firm, the Podesta Group. Weber left Mercury, a firm he had helped lead since 2011.

Koch-Linked Nonprofit Must Disclose Donors, Settlement Mandates
Bloomberg Government – Kenneth Doyle | Published: 9/19/2019

In a settlement with the FEC, the now-defunct Americans for Job Security (AJS) said it should have registered as a regulated PAC beginning in 2010 because it spent most of its money to influence elections. Such PACs must disclose their donors, unlike nonprofits that say they are mainly interested in policy issues rather than campaigns. While AJS acknowledged it had violated campaign finance law, the FEC said it would not seek an immediate fine because of the group’s defunct status and the long period of time since the spending occurred. The FEC approved the settlement before the departure of Commissioner Matthew Petersen, which left the agency without a four-member quorum to approve enforcement actions.

Pelosi Announces Impeachment Inquiry, Says Trump’s Courting of Foreign Political Help Is a ‘Betrayal of National Security’
MSN – Rachael Bade, Mike DeBonis, and Karoun Demirjian (Washington Post) | Published: 9/24/2019

House Speaker Nancy Pelosi took the extraordinary step of initiating impeachment proceedings against President Trump, accusing him of violating the Constitution in seeking help from a foreign leader to damage a political opponent. Pelosi’s move came after Trump acknowledged he urged the Ukrainian president to investigate former Vice President Joe Biden, a contender for the Democratic presidential nomination who holds a wide lead over Trump, polls show, in a potential general election matchup. The revelation prompted a rush of moderate House Democrats to call for an impeachment inquiry into Trump, a step they had resisted for months. The confrontation between the Democratic-led House and Trump is likely to further divide a polarized nation ahead of the 2020 election while carrying implications for both parties.

Politicians and Pundits Used to Refrain from Publicly Attacking Kids. Not Anymore.
Stamford Advocate – Hannah Natanson (Washington Post) | Published: 9/24/2019

Greta Thunberg is “mentally ill.” Emma González is a “skinhead lesbian.” David Hogg is “a special kind of stupid.” These may sound like playground taunts, but they are not: All are epithets applied by politicians, pundits, or political elites (adults) to the young leaders of global movements against climate change and gun violence. Thunberg is 16, and González and Hogg are in their late teens. This kind of rhetoric, experts say, is the hallmark of a new era of American political discourse: one that allows, even encourages, vitriolic verbal abuse of children and teenagers.

Trump’s Other Ukraine Problem: New concern about his business
Washington Post – Jonathan O’Connell and David Fahrenthold | Published: 9/26/2019

Buried in the controversy over President Trump’s phone call with Ukrainian President Volodymyr Zelensky was an effort by the Ukrainian leader at currying favor with Trump through his business. “Actually, last time I traveled to the United States, I stayed in New York near Central Park, and I stayed at the Trump Tower,” Zelensky told Trump, according to a rough transcript of the July 25 call. Zelensky’s comments mark the first known example of an interaction Democrats and ethics experts warned about when Trump took office: that foreign leaders would try to influence Trump by spending money at his properties and telling him about it.

Whistleblower Claimed Trump Abused His Office and That White House Officials Tried to Cover It Up
Portland Press Herald – Matt Zapotosky, Carol Leonnig, and Devlin Barrett (Washington Post) | Published: 9/26/2019

An intelligence community whistleblower raised alarms that President Trump used his office to pressure a foreign government to influence the 2020 U.S. election and his staff orchestrated a cover-up to keep details of a telephone call with Ukraine President Volodymyr Zelensky off normal channels. In the call, Trump pressed Zelensky to investigate Joe Biden and Biden’s son Hunter. Trump offered to enlist U.S. Attorney General William Barr’s help in that effort. While the whistleblower’s primary concern is the president’s phone call with Zelensky, it is clear from the document that its author also was troubled by what appeared then to be a four-month pattern of election season misconduct involving the president, his personal lawyer, Rudolph Giuliani, and White House aides who sought to keep the whole thing quiet.

From the States and Municipalities

Alaska – Ben Stevens Once Left the Alaska Senate in Disgrace. Now He’s Gov. Dunleavy’s Top Deputy.
Alaska Public Media – Nathaniel Herz | Published: 9/25/2019

Former Alaska Senate President Ben Stevens has been out of the public eye for a decade after he decided against running for re-election amid an ethics controversy that grew into bribery allegations against him. He was investigated by four federal agencies but was never charged with a crime. In December, Stevens was hired as a policy advisor to Gov. Mike Dunleavy. Then, in July, Dunleavy made Stevens his chief of staff, making him one of the most powerful unelected officials in the state. Stevens’ rise to an influential, public role revives some of the questions raised by Legislature’s 2006 corruption scandal, like the allegations by two former oil industry executives who said their company paid him bribes when he was a senator.

Arizona – Federal Judge Hears Arguments in Challenge to Initiative Law
Arizona Capitol Times – Howard Fischer (Capitol News Services) | Published: 9/25/2019

An attorney for the state asked a federal judge to uphold a law that challengers say is designed to make it more difficult for people to propose their own laws. Arizona Assistant Attorney General Joseph La Rue acknowledged the measure requires a judge to throw out all the signatures of paid or out-of-state circulators of initiative petitions if that person does not respond to a subpoena, regardless of whether the signatures gathered are actually valid. La Rue argued, however, that restriction is necessary to protect the integrity of the election process. U.S. District Court Judge Susan Bolton questioned why, if such automatic disqualification is necessary, that same provision does not apply when initiative signatures are collected by volunteers who are Arizona residents.

Arkansas – Lobbyist Fined $50 Over Late Reports
Arkansas Democrat-Gazette; Staff – | Published: 9/24/2019

Lobbyist Keith Emis was fined $50 and issued a public letter of caution by the Arkansas Ethics Commission in a settlement of a complaint filed against him. February is the only month in this three-month period in which Emis reported lobbyist expenses on his reports. Emis said he contracts with another accounting firm to file his reports with the state and there was some type of communication problem between the firm and the secretary of state’s website.

California – Commissioner Enjoyed Fine Dining, ‘Relationship Building’ with Insurance Executives Before Donations, Action in Their Favor
San Diego Union Tribune – Jeff McDonald | Published: 9/19/2019

Following Ricardo Lara’s swearing in as California insurance commissioner, Eric Serna, a New Mexico lobbyist who more than a decade ago resigned in disgrace as that state’s most senior insurance regulator, began turning up at meetings between the new insurance chief and industry executives. The second meeting between Lara and Serna included the proposed buyer and seller of Applied Underwriters, a workers’ compensation insurer that has been the subject of dozens of complaints. The pending sale requires the approval of the California insurance commissioner. The meetings raise questions about Lara’s statements in July, when he said he was unaware that donors with ties to Applied Underwriters had contributed some $54,000 to his campaign. After The San Diego Union-Tribune disclosed the donations, Lara issued a statement apologizing for what he called an oversight and pledged to return the contributions.

California – Judge Blocks California Law Requiring Trump Tax Returns
Courthouse News Service – Nick Cahill | Published: 9/19/2019

Delivering a legal win for President Trump, a federal judge temporarily barred California from enforcing a law enacted to force the president to release his tax returns in order to appear on the state’s upcoming primary ballot. U.S. District Court Judge Morrison England Jr. said he is concerned the statute could overstep federal ethics laws regarding candidates’ financial disclosures and granted Trump and the Republican National Committee’s motion for preliminary injunction. The sides are fighting over first-of-its-kind legislation that requires presidential and gubernatorial candidates to release at least five years of recent tax returns in order to land on the state’s primary ballot. State Democrats want to force Trump’s hand and give California voters access to his tax returns before the February primary.

Florida – Orlando Airport Board, Facing Criticism, Reverses Course on No-Bid Lawyer Contracts
Orlando Sentinel – Beth Kassab and Jason Garcia | Published: 9/18/2019

The board that controls Orlando International Airport backed down from a plan to give no-bid contracts to new lawyers. The Greater Orlando Aviation Authority scrapped a controversial proposal to name a pair of law firms to serve as co-general counsel for the next six months. Instead, they agreed to solicit proposals from any law firms interested in the temporary job, with plans to pick the new lawyers in November. “I do believe the process was flawed,” Orange County Mayor Jerry Demings said.

Florida – Sen. Farmer Says There Is No Conflict of Interest Over His Relationship with Lobbyist
Orlando Sentinel – Gary Roher | Published: 9/19/2019

Florida Sen. Gary Farmer, slated to be Democratic leader after the 2020 elections, said he has not broken any laws or Senate rules by engaging in a relationship with a lobbyist and dismissed any notion of a conflict-of-interest. “Look at my voting record and compare it to her clients before you do any kind of story,” Farmer said in an interview with The Orlando Sentinel. Farmer told some colleagues he has begun a relationship with Andreina Figueroa, a lobbyist for several clients, including the Florida Justice Association, a trial lawyer group Farmer used to lead. Figueroa also has ties to the Miami-Dade GOP, and Farmer is in charge of Senate Democratic campaign efforts for the 2020 election.

Florida – Shiver’s Checkered Past Includes Role as FBI Informant in Opa-locka Corruption Case
Miami Herald – Jay Weaver | Published: 9/24/2019

Homestead mayoral candidate Steve Shiver’s résumé has had many highs (past commissioner of Homestead, Miami-Dade County manager) and many lows (personal and business bankruptcies, unproven allegations of drug use). But there is one thing no one would have seen until now: “FBI confidential informant.” The FBI tapped him for that part when he was hired as city manager by Opa-locka, a notoriously corrupt city, in 2015. As an FBI source, Shiver had to keep quit when he was publicly accused by a local contractor of soliciting a $150,000 bribe. The contractor’s allegation against Shiver turned out to be false, part of an FBI sting operation. Shiver is hoping the revelation of his role as a confidential source will help his bid for Homestead mayor.

Illinois – Federal Agents Raid Springfield, Cicero Offices of Illinois Sen. Martin Sandoval, Says Source
Chicago Tribune – Jason Meisner, Jaime Muncks, and Ray Long | Published: 9/24/2019

Federal agents raided the Springfield and Cicero offices of Illinois Sen. Martin Sandoval as part of an ongoing criminal investigation, according to a source. The exact nature of the investigation was not disclosed. The raids on Sandoval’s offices come amid ongoing corruption probes at Chicago City Hall. Several allies of House Speaker Michael Madigan have also come under scrutiny in recent months. Sandoval, who chairs the Senate Transportation Committee, has worked with Madigan over the years on a variety of legislative issues.

Maryland – Hogan Raising ‘Dark’ Money to Boost His Agenda, Stop Costly Education Plan
Connecticut Post – Erin Cox (Washington Post) | Published: 9/19/2019

Maryland Gov. Larry Hogan is launching a campaign to oppose Democratic policy initiatives in the state. Hogan asked supporters to donate to his new super PAC to fund the lobbying and public relations efforts. Campaign finance watchdogs said the governor’s solicitation illustrates a troubling trend that has escalated over the past decade, as public officeholders find methods to raise unlimited money – some from undisclosed donors – in ways often prohibited for traditional candidate committees. Entities similar to Hogan’s caused political trouble for District of Columbia Mayor Muriel Bowser in 2015 and New York City Mayor Bill de Blasio this year, after transparency advocates said the fundraising activity can blur ethical boundaries.

Massachusetts – House Approves Campaign Finance Reporting, OCPF Changes
MassLive.com – Matt Murphy (State House News Service) | Published: 9/25/2019

A bill overhauling campaign finance rules for legislative candidates passed the Massachusetts House. While many Republicans cheered the proposed switch to a reporting system that would require more frequent disclosures of campaign fundraising and spending, GOP leaders objected to changes in the way the director of the Office of Campaign and Political Finance (OCPF) is chosen. House Bill 4087 would create a new commission in charge of hiring the director of OCPF that would no longer include the chairs of the Democratic and Republican parties. OCPF Director Michael Sullivan was reappointed to new six-year term last November, but there is speculation that he may soon retire. “This is an obvious power play to eliminate any say that the minority party has when it comes to selecting the next OCPF director,” said state GOP Chairperson Jim Lyons.

Massachusetts – Sen. Jo Comerford Bill Would Ban Use of Public or Campaign Funds for Sexual Harassment Payouts
MassLive.com – Katie Lannan (State House News Service) | Published: 9/18/2019

A bill sponsored by Massachusetts Sen. Jo Comerford would prohibit elected officials in the state from using public or campaign funds to pay settlements or fines in sexual assault or harassment cases. In cases where an official is unable to pay with private funds, a public entity could use its money to cover the claim or settlement. The official would need to reimburse the entity, potentially by having portions of their salary withheld. Comerford was elected last year after a successful write-in campaign for the seat last held by former Senate President Stan Rosenberg, who resigned after an Ethics Committee report criticized his conduct in connection with sexual assault and harassment allegations against his husband, Bryon Hefner.

Michigan – Ex-Detroit Official Sent to Prison in Demolition Scandal
Detroit News – Robert Snell | Published: 9/23/2019

A city official who received as much as $26,500 in bribes from a contractor while rigging bids to tear down homes in Detroit’s federally funded demolition program was sentenced to one year in federal prison. The sentence for Aradondo Haskins represents the latest fallout from a corruption scandal clouding Detroit Mayor Mike Duggan’s program to rehabilitate the post-bankrupt city. Haskins is one of two people convicted of a pattern of corruption involving demolition contractors and dozens of secret payoffs. The corruption undermined the integrity of an unprecedented plan to remove thousands of dangerous, blighted structures in a city decimated by the Great Recession, prosecutors said.

Michigan – Lobbyists Spend Big on Food and Drink for State Lawmakers in 2019
MLive.com – Alyssa Burr | Published: 9/26/2019

Michigan lawmakers have consumed $540,637 worth of lobbyist-funded food and drink in the first seven months of 2019, a new report says. Craig Mauger, executive director of the Michigan Campaign Finance Network who put out the report, said lobbyists’ main strategy is to build relationships with lawmakers. “A lot of these meals take place like that. … It’s about talking about policies that are maybe before these lawmakers,” said Mauger. The lobbying law does not require lobbyists to tie all of their food and drink purchases directly to specific officeholders. Lobbyists only have to disclose which lawmakers they buy food for if they spend more than $62 in a month on an individual officeholder or more than $375 in a year on an individual officeholder.

Missouri – Ferguson Mayor Candidate Nabbed – Again – for Spending Campaign Cash on Himself
St. Louis Post-Dispatch – Kurt Erickson | Published: 9/24/2019

Former Missouri Rep. Courtney Curtis, who is running to be mayor of Ferguson, used his campaign account like a personal piggy bank, spending money on visits to spas, hotels, and concert events, state ethics regulators said. Curtis, who has had multiple run-ins with the state Ethics Commission over his campaign accounts, was fined more than $77,000 by the panel for a variety of alleged transgressions, including spending money from his account on gas and hotels while also receiving daily expense reimbursements from the state during his time as a House member. Curtis’ fine could be waived if he pays $7,750 and stays in compliance with state law for two years, the commission said.

Montana – Campaign Contribution Limits Go Up in Montana
The Missoulian – Holly Michels | Published: 9/23/2019

Campaign contribution limits are going up in Montana following an adjustment to match inflation required under state law. The new caps took effect September 21. Contributions made before that were subject to the older limits, but those who have already given money can donate again up to the new limit. The increases are slight: the amount an individual person can give to a campaign for governor rose from $710 to $680 per election, for example.

Nebraska – Prosecutors Drop 1 Charge Against UNL Researcher Accused of Defacing Republicans’ Signs, Office Door
Omaha World-Herald – Rick Ruggles | Published: 9/24/2019

Prosecutors have dropped one of two vandalism charges against a researcher at the University of Nebraska-Lincoln accused of defacing U.S. Rep. Jeff Fortenberry’s campaign. Patricia Wonch Hill was accused of putting “googly eyes” on some campaign signs that promoted Fortenberry. At least one of the signs had been altered so it read “Fartenberry.” The charge associated with the Fortenberry allegation was dropped. The remaining charge against Wonch Hill is an allegation she put stickers on state Sen. Deb Fischer’s office door in Lincoln. Wonch Hill has denied that.

New York – De Blasio to Developers: Donate to my nonprofit. $125,000 came
ENM News – Jeffrey Mayes (New York Times) | Published: 9/20/2019

The Joint Commission on Public Ethics (JCOPE) announced it reached settlements with three developers to pay a combined $65,000 for potential violations of New York’s lobbying law. The regulations preclude lobbyists and their clients from “giving gifts to a public official or to third parties on behalf of or at the designation or recommendation of a public official,” according to JCOPE. All three companies had hired lobbyists to influence New York City at the same time they donated money to Mayor Bill de Blasio’s political nonprofit group, the Campaign for One New York. The organization was used to support de Blasio’s political agenda. According to a report from the New York City Department of Investigation, the mayor and his intermediaries solicited donations from individuals and companies with business before the city.

New York – Trump Lawyers Argue He Cannot Be Criminally Investigated
MSN – Michael Gold (New York Times) | Published: 9/18/2019

Lawyers for President Trump argued he cannot be criminally investigated while in office as they sought to block a subpoena from state prosecutors in Manhattan demanding eight years of his tax returns. Taking a broad position that the lawyers acknowledged had not been tested, the president’s legal team argued in the complaint that the Constitution effectively makes sitting presidents immune from all criminal inquiries until they leave the White House. The lawsuit was filed in response to a subpoena issued to Trump’s accounting firm. The subpoena sought eight years of the president’s personal and corporate tax returns as the office investigates the role Trump and his family business played in hush-money payments made in the run-up to the 2016 presidential election.

North Carolina – Duke Energy PAC Donations, Refunds Spark Complaint
WRAL – Travis Fain | Published: 9/18/2019

A campaign finance watchdog filed a complaint against Duke Energy’s PAC, arguing more than $40,000 in now-refunded campaign donations to key North Carolina legislators were illegal contributions. The donations caught Bob Hall’s eye because the checks were logged just before the start of this year’s legislative session, then refunded in the following weeks and months. Most of the campaign involved said Duke’s PAC asked for the refunds. In some cases, they said, they were not entirely sure why. A company spokesperson said it was a timing issue: The checks were printed in December but given out in January because the PAC had already hit campaign contribution limits for the 2018 election cycle. Hall accused the company of making excess donations in 2018, then hiding it.

North Dakota – Extent of North Dakota Ethics Commission’s Authority Already Questioned
Grand Forks Herald – Jack Dura (Bismarck Tribune) | Published: 9/22/2019

Without any rules or even office space yet, North Dakota’s new Ethics Commission is already facing questions of how far its authority might extend, including a query about oilfield spills. The panel has not yet begun crafting rules related to transparency, corruption, elections, and lobbying. Commissioners say such rules will help guide their actions and decision-making as to investigations of complaints. For now, the board is working to address office and staffing details. One major item for its next agenda likely will be to outline apparent conflicts in constitutional and statutory language related to the board’s duties and definitions, such as confidentiality of complaints permitted by the constitution but not allowed by state law. The board might eventually request an attorney general opinion.

Oklahoma – Oklahoma Legislator Rents Apartment from Energy Lobbyist
The Oklahoman – Carmen Forman | Published: 9/23/2019

Oklahoma Rep. Kevin Wallace, chairperson of the House Appropriations Committee, rented an apartment from lobbyist OGE Energy lobbyist Ken Miller during the legislative session and in other months when Wallace had to be at or near the Capitol for meetings and other events. The arrangement between Wallace and Miller is not illegal, nor does it violate state ethics rules. But it gives the appearance that a special interest group may have outsized influence over legislative actions, said Beth Rotman of Common Cause. “When you have powerful policymakers literally sharing living space with people whose paid role it is to influence policy, things look way too cozy,” said Rotman.

Oregon – Case Closed: In Oregon campaign investigations, ‘I did not’ is all it takes
Portland Oregonian – Rob Davis | Published: 9/17/2019

When Oregon’s election watchdogs investigate potential violations of campaign laws, critics say they take a lackadaisical approach to ferreting out wrongdoing. The state’s weak enforcement gives powerful politicians and their financial supporters an easy out, even when they admit to behavior that may have violated state law. Steve Trout, the Oregon elections director, defended the state’s oversight of campaign finance laws. “Is it 100 percent rock solid? No,” Trout said. “Is it close? Yeah. We have to make decisions based on resources and priorities on how close to 100 percent we get.”

Pennsylvania – Philly Voting Machine Vendor Engaged in Years-Long Effort to Win Contract, City Watchdog’s Investigation Finds
Philadelphia Inquirer – Jonathan Lai | Published: 9/25/2019

Election Systems and Software (ES&S), the vendor that won a $29 million contract to supply Philadelphia with new voting machines, engaged in a years-long effort to lobby elections officials, who then rushed an opaque process that was biased toward that company, City Controller Rebecca Rhynhart said. ES&S spent more than $428,000 since January 2014 in lobbying efforts, the investigation found. Rhynhart said the findings raise questions about the process and whether election commissioners acted ethically when they chose ES&S’ touchscreen ExpressVote XL machines to be used beginning this November.

Rhode Island – Former Providence City Councilman Released from Court After Ethics Fine Paid
Providence Journal – Madeline List | Published: 9/25/2019

Constables with the Rhode Island Division of Sheriffs brought former Providence City Councilperson Luis Aponte into court after he was found in contempt for failure to appear to pay a debt owed to the state Ethics Commission. Aponte was released after “a woman showed up with cash” and paid the $1,623 fine, said Paul Grimaldi, spokesperson for the Department of Revenue. Aponte resigned from the council this summer after pleading no contest to embezzling $13,942 from his campaign account.

Tennessee – Former Davidson County Chancellor Bill Young Selected to Oversee Watchdog Agencies
The Tennessean – Joel Ebert | Published: 9/24/2019

Former Nashville Chancellor Bill Young was selected to serve as the next director of the Tennessee Bureau of Ethics and Campaign Finance. Young, who twice served in the state attorney general’s office, was chosen to succeed Drew Rawlins, who retired earlier this year, by members of the state Ethics Commission and the Registry of Election Finance. Janet Williams has served in an interim role since Rawlins’ retirement. Several of the candidates for the job talked in their interviews about the need for the watchdog groups to revamp their website, continue collecting civil penalties assessed against candidates and public officials, and the importance of having the registry begin holding its meetings throughout the state.

Virginia – Millions of Dollars Are Missing. The Sheriff Is Dead. A Small Virginia Town Wants Answers.
MSN – Antonio Olivo (Washington Post) | Published: 9/24/2019

A corruption probe involving current and former public officials resulted in 14 indictments in Warren County, Virginia – including all five county supervisors. The charges resulted from an investigation into the financial dealings of the Front Royal-Warren County Economic Development Authority. It has been alleged that at least $21 million has been embezzled in Warren County. The money was discovered missing last March and led to the authority suing its former executive director, Jennifer McDonald, and former Warren County Sheriff Daniel McEathron, who resigned and then committed suicide after McDonald’s arrest. Critics say the scandal reflects the perils of weak oversight in quasi-public economic development agencies.

Virginia – Virginia Senator Says She Never OK’d Ad Vowing to ‘Shoot Down’ Anti-Gun
Connecticut Post – Laura Vozzella (Washington Post) | Published: 9/23/2019

Virginia Sen. Amanda Chase blamed her digital advertising firm, the Prosper Group, for a political ad that shows her vowing to “shoot down” anti-gun activists, releasing a recorded phone conversation she said backs up her claim. A gun rights champion who caused a stir this year by wearing a gun on her hip on the Senate floor, Chase is running for a second term in November. In a recent Facebook ad, she is pictured pointing a gun. “I’m not afraid to shoot down gun groups,” it reads. “SIGN my petition to help end the assault on our liberties.” The backlash was swift, with local and national gun-control groups accusing her of threatening violence against them. The Prosper Group said the campaign had signed off on “shoot down” language for the “website landing page” that accompanies the ad, where supporters can sign a petition.

Washington – Food-Makers Fight Record Fine in Washington GMO Case
Capital Press – Don Jenkins | Published: 9/23/2019

The Washington Supreme Court will hear arguments on whether the Grocery Manufacturers Association (GMA) violated state election law by not naming the companies that spent $11 million to defeat a genetically modified-labeling initiative in 2013. The court also will decide whether to uphold the largest-ever fine levied in the U.S. for a campaign finance violation: $6 million. The GMA argues lower courts were insensitive to internet-fueled reprisals that businesses face. By funneling campaign contributions through an umbrella organization, food-makers preserved their right to band together and take political stands, according to the GMA. The association collected the money and reported itself as the donor.

Washington DC – Why a D.C. Lawmaker Under Investigation Votes on His Own Probe and Discipline
Washington Post – Fernit Nirappil | Published: 9/18/2019

The District of Columbia Council, frustrated by roadblocks in its investigation of possible ethics violations by member Jack Evans, voted to allow city officials to ask a court to compel the lawmaker’s private clients to cooperate. The lone dissenting vote was cast by Evans. It was one of several votes taken by Evans that have pertained to investigations of his conduct in office. The idea of recusal was never broached by Evans or his colleagues on the council during the recent vote. Council rules give lawmakers discretion to decide when to sit out votes. But critics say Evans had an obvious conflict.

Wyoming – Wyoming Is Looking to Close a Campaign Finance Loophole. But It May Not Matter.
Casper Star Tribune – Nick Reynolds | Published: 9/21/2019

Wyoming lawmakers are patching the loopholes that were revealed during the 2018 mid-term election, assembling a reform package ahead of the upcoming legislative session. Among the proposed reforms is a bill intended to close a loophole in the state’s campaign finance law which, previously, allowed corporations and nonprofits to contribute funds or services to campaign committees or PACs who “directly coordinate with a candidate or a candidate’s campaign committee.” This suggestion would knock down a piece of low-hanging fruit that should, if passed into law, create an explicit barrier between politicians and the private sector. But campaign finance experts say the law, while well-intended, does little to obstruct the use of special interest funding to influence the outcome of state elections. Not because the statute itself is a bad law, but because of the lack of any means to enforce it independently.

September 24, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance North Carolina: “Duke Energy PAC Donations, Refunds Spark Complaint” by Travis Fain for WRAL Oregon: “Case Closed: In Oregon campaign investigations, ‘I did not’ is all it takes” by Rob Davis for Portland Oregonian Wyoming: “Wyoming Is Looking […]

September 4, 2019 • Written by Mario Dalessandro

Group Challenging Montana Campaign Order

Montana Gov. Steve Bullock - Gage Skidmore

The Illinois Opportunity Project is challenging Gov. Steve Bullock’s Executive Order 15-2018. Bullock’s Executive Order requires organizations receiving large state contracts to report political contributions that exceed $2,500, even if the disclosures are not required under federal election laws. The […]

August 30, 2019 • Written by Jim Sedor

News You Can Use Digest – August 30, 2019

National/Federal Barr Books Trump’s Hotel for $30,000 Holiday Party MSN – Jonathan O’Connell and David Fahrenthold (Washington Post) | Published: 8/27/2019 Attorney General William Barr will hold a family holiday party for 200 people at Trump International Hotel in December that […]

National/Federal

Barr Books Trump’s Hotel for $30,000 Holiday Party
MSN – Jonathan O’Connell and David Fahrenthold (Washington Post) | Published: 8/27/2019

Attorney General William Barr will hold a family holiday party for 200 people at Trump International Hotel in December that is likely to cost $30,000. Barr is paying for the event himself and chose the venue only after other hotels were booked, according to a Department of Justice official. The official said the purpose of Barr’s party was not to curry favor with the president. Barr holds the bash annually, and it combines holiday festivities and a cèilidh, a party featuring Irish or Scottish music. Barr’s decision to book his boss’s hotel marks the latest collision between Trump’s administration and his business, which the president no longer operates but from which he still benefits financially.

Could Take FEC a While to Regain a Quorum, But Don’t Expect a ‘Wild West’
Roll Call – Kate Ackley | Published: 8/28/2019

FEC Vice Chairperson Matthew Petersen announced he will be stepping down by the end of August. The departure leaves the FEC with only three out of six commissioners, which means the agency is one vote short of the minimum of four votes needed to initiate audits, engage in rulemaking, vote on enforcement matters, issue an advisory opinion, or hold meetings. Still, those who advise campaigns and donors, or focus on campaign finance law, say the 2020 campaigns will not be entirely without legal checks or public relations concerns. In 2008, the FEC lacked a quorum for a few months. A senior Senate GOP aide said despite an apparent lack of movement on the matter, there is an ongoing effort to fill all six FEC seats.

David Koch Leaves Behind Legacy of Dark Money Political Network
Roll Call – Kete Ackley | Published: 8/23/2019

David Koch, who helped pioneer a network of often surreptitious organizations aimed at influencing elections and public policy, leaves behind a legacy of “dark-money” groups and a volatile political landscape. Koch, one half of the Koch Brothers along with his older brother Charles, has died at age 79. Congressional and K Street insiders, whether they agreed with the Kochs’ libertarian-conservative ideology or fought it, agreed that David Koch left a lasting imprint on the nation’s politics. The Koch network, which includes such groups as Americans for Prosperity, helped to resuscitate the Republican Party after its losses in the 2008 presidential and congressional elections and helped give rise to the tea party movement.

Ethics Outcry as Trump Touts ‘Magnificent’ Doral for Next G7
AP News – Bernard Condon and Adriana Gomez Licon | Published: 8/26/2019

Watchdogs have long railed against the perils of Donald Trump earning money off the presidency and hosting foreign leaders at his properties. But they say Trump’s proposal to bring world leaders to his Miami-area resort for the next Group of 7 meeting takes the conflict-of-interest to a whole new level because, unlike stays at his Washington, D.C., they would have no choice but to spend money at his property. Trump’s pitch comes as several lawsuits accusing the president of violating the U.S. Constitution’s emoluments clause, which bans gifts from foreign governments, wind their way through the courts. It also comes as Doral, by far the biggest revenue generator among the Trump Organization’s 17 golf properties, appears to have taken a hit from Trump’s move into politics.

Facebook Tightens Political Ad Rules, But Leaves Loopholes
AP News – Barbara Ortutay | Published: 8/27/2019

Facebook said it would tighten some of its rules around political advertising ahead of the 2020 presidential election. The changes include a tightened verification process that will require anyone wanting to run ads pertaining to elections, politics, or big social issues like guns and immigration to confirm their identity and prove they are in the U.S. Beginning in mid-September, such advertisers confirm their group’s identity using their organization’s tax identification number or other government ID. A loophole that will allow small grassroots groups and local politicians to run political ads could continue to allow bad actors to take advantage of the process.

Joe Walsh Says Trump Is ‘Unfit’ to Be President. Some Say the Same About Him.
ENM News – Matt Stevens and Annie Karni (New York Times) | Published: 8/27/2019

Former U.S. Rep. Joe Walsh, now a conservative radio show host, is challenging President Trump for the Republican nomination on the basis that he represents an alternative to a president who is morally unfit to hold his office. But in the days since Walsh announced his bid, he has been forced to confront his own highly questionable behavior. As Walsh introduces himself to voters, his long trail of racist and anti-Muslim statements, voiced for years on his conservative radio show and on Twitter, have revealed more similarities with Trump than stark differences in views and temperament.

Kirsten Gillibrand Exits Presidential Race
Politico – Elena Schneider | Published: 8/28/2019

U.S. Sen. Kirsten Gillibrand ended her bid for the presidency. Gillibrand, who ran a distinctly feminist campaign, failed to meet the Democratic National Committee’s criteria for the September presidential debate. A statement released by her campaign cited her lack of “access to the debate” stage as a reason she decided to end her run. Gillibrand struggled to stand out of the sprawling, diverse Democratic primary field, which included five other women. Like other candidates languishing at single or near zero digits in national polling, Gillibrand was not able to pull off a breakthrough moment.

Obama Announces New Push in Fight Against Gerrymandering
HuffPost – Sam Levine | Published: 8/27/2019

A group backed by President Obama will send experts to train people across the country on the basics of redistricting as part an effort to fight excessive partisan gerrymandering. The new effort, called Redistricting U, comes as states are gearing up for the next round of map drawing, which will take place in 2021. The redistricting process, which takes just once per decade, is expected to be a brutal brawl for partisan advantage. The U.S. Supreme Court ruled in June that there were no constitutional limits on how severely states could manipulate district lines to benefit political parties.

Sen. Johnny Isakson to Resign at End of the Year
Politico – Burgess Everett | Published: 8/28/2019

U.S. Sen. Johnny Isakson is resigning at the end of 2019 in the face of mounting health problems, adding another competitive seat as Republicans look to defend their narrow majority in 2020. Isakson’s term runs through 2022, and Georgia Gov. Brian Kemp, under state law, is allowed to fill the vacant U.S. Senate seat. A special election will be held to fill the remaining two years of Isakson’s term during the next regularly scheduled election, meaning Georgia voters will cast ballots for both of the state’s Senate seats in 2020. The state has typically been safe conservative territory in recent years, but Democrats are increasingly optimistic about their ability to compete there. Democrat Stacey Abrams narrowly lost to Kemp in the gubernatorial election in 2018.

The Boss Can Tell You to Show Up for a Trump Rally
The Atlantic – Charlotte Garden | Published: 8/28/2019

When President Trump arrived in Pennsylvania to give a speech about energy policy at a Royal Dutch Shell plant, he had a ready-made audience comprised of workers who, it turns out, were paid to be there. The company suggested this event was simply a “training day” featuring a prominent guest speaker and offered that workers could take a day of paid time off instead of attending, which would mean they would lose overtime pay. That alternative may have been realistic for some workers, but others must have felt the only option was to attend the rally. Employers have a largely unconstrained ability to try to influence their workers’ political choices. Sometimes, employers and their lobbyists hope to benefit from workers’ legitimacy on issues that affect them by leveraging their voices in lobbying campaigns.

Trial of High-Powered Lawyer Gregory Craig Exposes Seamy Side of Washington’s Elite
ENM News – Sharon LaFraniere (New York Times) | Published: 8/26/2019

The most riveting aspect of the case against Gregory Craig, one of Washington, D.C.’s most prominent lawyers, is not his innocence or guilt. Rather, it is the depiction of the seamy world of power brokers like Craig that prosecutors have painted during testimony and in an array of court filings. Craig is charged with lying to investigators about the role of his law firm – Skadden, Arps, Slate, Meagher & Flom – in a public relations effort surrounding a report it created for former Ukrainian President Viktor Yanukovych. The details of the case include a $4 million payment shunted through a secret offshore account to Skadden and a bungled wiretap by a suspected Russian intelligence asset nicknamed “the angry midget.” They illustrate how lawyers, lobbyists, and public relations specialists leapt to cash in on a foreign government’s hopes of papering over its sordid reputation.

Trump’s Bank Has Tax Records Congress Is Seeking in Subpoenas Targeting the President’s Finances
MSN – Ann Marimow (Washington Post) | Published: 8/27/2019

President Trump’s biggest lender has in its possession tax records Congress is seeking in targeting the president’s financial dealings, the bank told a federal appeals court. The disclosure from Deutsche Bank came in response to a court order as part of a legal battle between Congress and the president over access to Trump’s business records. The revelation provides new details about the pool of possible documents Congress could eventually obtain. The House Financial Services and Intelligence committees have subpoenaed the banks for years of financial documents from the president, his three eldest children, and the president’s companies.

Trump’s ‘Chopper Talk’ Puts Media on the Defensive
Politico – Michael Calderone and Daniel Lippman | Published: 8/22/2019

As reporters shouted questions above the din of a helicopter’s churning engines, President Trump picked the ones he wanted and brushed past those he did not. The impromptu news conference near Marine One may have looked bizarre to veteran observers of the White House, but there is a method to the seeming madness. The “Chopper Talk” sessions, as comedian Stephen Colbert has dubbed them, serve multiple goals for Trump, insiders say. They allow Trump to speak more often in front of the cameras than his predecessors, yet on his own terms. He makes headline-ready pronouncements and airs grievances for anywhere from a few minutes to a half-hour, and then walks away when he has had enough. Trump’s freewheeling sessions have essentially replaced the formal White House press briefing.

Watchdog: Comey violated FBI policies in handling of memos
AP News – Eric Tucker | Published: 8/29/2019

James Comey violated FBI policies in his handling of memos documenting private conversations with President Trump in the weeks before he was fired as director of the bureau, the Justice Department’s inspector general said. The watchdog’s office said Comey broke FBI rules by giving one memo containing unclassified information to a friend with instructions to share the contents with a reporter. Comey also failed to notify the FBI after he was dismissed in May 2017 that he had retained some of the memos in a safe at home, the report said. But the inspector general also concluded none of the information shared with the reporter was classified.

Canada

Canada – ‘Show Up and Do Something’: Critics call on lobbying commissioner to act on Dion report
Hill Times – Samantha Wright Allen and Beatrice Paez | Published: 8/26/2019

Ethics Commissioner Mario Dion’s damning report on Prime Minister Justin Trudeau documented previously undisclosed interactions between SNC-Lavalin and the government during the embattled company’s pursuit of a deferred prosecution agreement, raising questions from critics about whether it was operating in full compliance with federal lobbying regulations or whether disclosure rules should change. Dion reported then-Attorney General Jody Wilson-Raybould faced political pressure to override a decision not to offer the company a remediation agreement that would spare SNC from a criminal trial, which could have barred the company from competing for federal contracts for 10 years. Dion ruled Trudeau improperly pressured Wilson-Raybould in violation of the Conflict of Interest Act, which bars high-level officials from furthering another person’s or entity’s private interests.

From the States and Municipalities

Alabama – Limestone County’s 10-Term Sheriff Arrested on Ethics, Theft Charges
AL.com – Ashley Remkus | Published: 8/22/2019

Limestone County Sheriff Mike Blakely was arrested on theft and ethics charges that include accusations of taking money from campaign and law enforcement accounts. Blakely was the subject of an investigation by the Alabama Ethics Commission, which last year found probable cause the sheriff violated state ethics law. The commission sent the case to the attorney general’s office for investigation. In 2018, Blakely amended a 2016 ethics disclosure form to show he received more than $250,000 from Tennessee lottery and gaming establishments.

Arkansas – State Bureau OK’d to Hire Legal Counsel; in Corruption Probe, It’s to Go with Firm It Used Before
Arkansas Democrat-Gazette – Hunter Field | Published: 8/23/2019

The Arkansas legislative staff intends to rehire a law firm to represent it in the face of increasing requests from federal investigators. The probe into public corruption involving Arkansas lawmakers started at least six years ago with reports of legislators directing state General Improvement Fund grants to two nonprofits, a small college, and a substance abuse treatment center in exchange for kickbacks. The probe expanded to include lobbyists and former executives of a Missouri nonprofit, Preferred Family Healthcare, accused of paying bribes to Arkansas legislators in exchange for laws or state regulations favorable to their businesses. Also caught up was a former administrator of a youth lockup, accused of hiring a state legislator who was an attorney to perform political favors.

California – Will Letting Bars Stay Open Late Help Gavin Newsom? He’ll Soon Act on Bills Affecting His Company
Sacramento Bee – Sophia Bollag | Published: 8/27/2019

California Gov. Gavin Newsom, whose investments in the hospitality industry made him a millionaire, put his holdings in a blind trust after winning last year’s governor’s race. As a new officeholder, he issued an executive order forbidding state executive branch agencies from doing business with PlumpJack Group, the company he founded. Ethics experts say Newsom has done all he can short of selling his holdings to insulate himself from potential conflicts-of-interest. But as the state Legislature enters its final weeks for the year, Newsom will find himself faced with decisions about bills that could affect his bars, restaurants, and hotels. Experts say he will still face potential conflicts as long as he owns them.

Florida – In Campaign Shaded by #MeToo Claims, Former Commissioner Faces Man She Accused
Miami Herald – Martin Vassolo | Published: 8/22/2019

If all politics is personal, what is happening in Miami Beach appears to have gone beyond the pale. Kristen Rosen Gonzalez and Rafael Velasquez are running against each other this year for a seat on the Miami Beach City Commission, offering a unique glimpse at the dynamics of a post-#MeToo political campaign. Rosen Gonzalez had been helping Velasquez campaign for the commission in 2017 when she went public with her accusations that Velasquez exposed himself to her. Prosecutors declined to charge Velasquez and found evidence that conflicted with Rosen Gonzalez’s account, but did not pursue a counterclaim that she had fabricated the allegations.

Florida – State Senate Resolves Complaint Against NRA’s Top Lobbyist in Florida
Miami Herald – Jim Turner (News Service of Florida) | Published: 8/23/2019

The Florida Senate closed an investigation into NRA lobbyist Marion Hammer, instructing her to amend disclosure reports but not issuing any sanctions. She was accused of failing to divulge hundreds of thousands of dollars in payments she received from the NRA as required by the law. Hammer received $979,000 from the NRA from 2014 to 2018. As the director of the pro-gun group Unified Sportsmen of Florida, Hammer earns an annual salary of $110,000. That organization has been receiving $216,000 a year in funding from the NRA. Legislative officials said Unified Sportsmen’s lobbying reports should be amended to reflect its relationship with the NRA and the funding it has received. Hammer was directed to amend lobbyist registrations to reflect she was employed by Unified Sportsmen of Florida to represent the NRA.

Kentucky – Lexington Real Estate Executive Charged with 16 Campaign Finance Violations
Lexington Herald-Leader – Beth Musgrave | Published: 8/27/2019

A Lexington business executive was indicted by a Fayette County grand jury for 16 violations of Kentucky’s campaign finance law. Timothy Wayne Wellman was charged for allegedly giving campaign contributions to straw donors and then reimbursing those contributors after the donations were made. State law prohibits individuals from giving more than $2,000 per election cycle. He was indicted in June on nine federal counts of allegedly lying and instructing others to lie about campaign contributions to Lexington-Fayette Urban County Council candidates during the May 2018 primary.

Maine – Inside Susan Collins’ Reelection Fight in the Age of Trump
Politico – Burgess Everett | Published: 8/26/2019

U.S. Sen. Susan Collins is facing the race of her life despite her universal name recognition and bipartisan reputation. President Trump is targeting Maine as a battleground while his divisive politics has cleaved the state in two, and Collins shares the ticket with him. National Democrats, meanwhile, are backing Sara Gideon as her likely opponent, a battle-tested statehouse speaker who raised more than $1 million in the week after her launch. Projected to be the most expensive in Maine’s history, the race is of imperative importance for party leaders and the Senate institution itself. With scarce opportunities elsewhere, Senate Democrats essentially need Gideon to win to gain a minimum of three seats and the majority. In the Senate, a Collins loss would be a potentially fatal blow to the reeling center of the chamber.

Maryland – Maryland Horse Racing Commission Dominated by Industry Players. They Manage Cash Awards – and Win Them.
Baltimore Sun – Doug Donovan | Published: 8/22/2019

State law for three decades has allowed no more than four members of the nine-seat Maryland Racing Commission to “have a financial interest” in horse racing. But today, six commissioners have a financial stake in the sport and five of them own or breed racehorses that are eligible to receive cash bonuses from an incentive program established to bolster Maryland’s equine industry, The Baltimore Sun found. All five have participated in decisions determining the size of the awards despite a state ethics opinion that some believe prohibits regulators from voting on matters that could benefit their interests.

Massachusetts – Lobbyist Caught Up in State Police Case Is Known for Her Edge on Beacon Hill
Boston Globe – Matt Stout | Published: 8/22/2019

To federal authorities, Anne Lynch was a willing partner in a complex bribery scheme allegedly intended to benefit herself and the head of a State Police union. To the Massachusetts Movers Association, however, she was organized and thorough, and in the nearly 10 years she managed the trade group, she showed she would not be taken lightly. Her blunt approach made her a longtime, if not high-profile, player in various industry circles on Beacon Hill, where she evolved from managing the day-to-day business of trade associations to running a lobbying firm paid hundreds of thousands to push the interests of dozens of organizations. That included the powerful state troopers union, with whose president, authorities alleged, the work veered into something criminal.

Michigan – Candidate Who Wanted City as White ‘as Possible’ Withdraws from Council Race in Michigan
USA Today – Jackie Smith (Port Huron Times Herald) | Published: 8/26/2019

A city council candidate in Michigan whose racist comments have garnered nationwide attention has formally withdrawn from the race. Marysville Mayor Dan Damman said Jean Cramer submitted a letter withdrawing three days after he called for her to do so. During a city election forum, Cramer had been the first to respond to a question about attracting foreign-born residents to the community when she responded: “Keep Marysville a white community as much as possible. In a follow-up question from a reporter after the event, Cramer confirmed her beliefs. Her name will still appear on the November 5 ballot.

Michigan – Former State Rep. Todd Courser Pleads No Contest to Willful Neglect of Duty
MLive.com – Julie Mack | Published: 8/28/2019

Former Michigan Rep. Todd Courser pleaded no contest to willful neglect of duty by a public officer, a misdemeanor related to the 2015 scandal that forced him out of office. The misconduct involves soliciting a state employee to send out a false email. Soon after he was elected in 2014, Courser became the focus of a sex scandal involving his affair with then state Rep. Cindy Gamrat. To cover up the affair, he asked an aide to share an email containing outlandish allegations against him so rumors of his affair with Gamrat would pale in comparison and not be believed. A House investigation found the lawmakers “abused their offices” by directing staff to facilitate their affair, and they also blurred lines between official and political work.

Michigan – ‘There’s a Gray Area’: Campaign finance experts weigh in on Inman bribery case
Michigan Advance – Nick Manes | Published: 8/21/2019

To campaign finance watchdogs, the word “corruption” may be getting more difficult to legally define, but the case against indicted Michigan Rep. Larry Inman appears to be a near-textbook example. Richard Hall, a professor of public policy and political science at the University of Michigan, was blunt in his assessment of the text messages allegedly sent by Inman to union officials seeking campaign contributions in exchange for a vote against prevailing wage repeal. “As a student of campaign finance law, I don’t know how this case doesn’t meet the standard of causing the appearance of corruption,” Hall said. But Craig Mauger, executive director of the Michigan Campaign Finance Network, said the case against Inman gets into murky territory regarding the difference between campaign donations and bribes.

Montana – Group Files Challenge to Bullock’s Executive Order on ‘Dark Money’ and State Contracts
Helena Independent Record – Holly Michels | Published: 8/28/2019

The Illinois Opportunity Project asked a federal judge to strike down Montana’s nearly year-old policy that requires certain businesses seeking contracts with the state to disclose donors and spending on elections. Gov. Steve Bullock signed an executive order saying that to receive a state contract, an organization must report its political contributions. The order extends to so-called social welfare nonprofit organizations that, under campaign finance laws, do not have to disclose their donors. It applies to groups that have spent more than $2,500 over the past two-year cycle and is for contracts of more than $50,000 for goods or $25,000 for services.

New Hampshire – Trump’s Revival of Claim of Voting Fraud in New Hampshire Alarms Some State Republicans
Savannah Morning News – Amy Gardner (Washington Post) | Published: 8/29/2019

It was one of the first claims President-elect Donald Trump made about voter fraud in the wake of his 2016 victory: that his close loss in New Hampshire was propelled by thousands of illegal ballots cast by out-of-state voters. Trump’s revival of that false assertion as he ramps up his reelection campaign is now alarming some New Hampshire Republicans, who fear the president’s allegations could undermine confidence in next year’s election. Shortly after his inauguration, the president announced plans for a commission to investigate alleged voter fraud, which ended up disbanding barely a year later with no findings. With his reelection campaign now underway, Trump has returned to the topic.

New Jersey – Booker’s Mayoral Campaign Profited from Corrupt Newark Agency, Jailed Official Told
Newark Star Ledger – Karen Yi (NJ Advance Media) | Published: 8/28/2019

The former director of the agency that once managed Newark’s water told federal investigators in 2015 that she pressured vendors to make campaign contributions to then-Mayor Cory Booker and his political friends, new court records show. Linda Watkins-Brashear, who is currently serving an eight-year sentence for soliciting bribes in exchange for no-show contracts, said a Booker ally at the Newark Watershed Conservation and Development Corp. set a donation goal for vendors who usually bought $500 fundraising tickets without question. The records raise new questions about Booker’s record as mayor of Newark, a tenure that was a springboard to his successful U.S. Senate campaign and his current bid to win the Democratic Party nomination for the presidency. Booker has said he was unaware of the corruption that eventually led to the agency’s downfall.

New Jersey – Phil Murphy Says Fired Worker’s Social Media Posts Offensive, Declines Hiring Questions
Bergen Record – Dustin Racioppi | Published: 8/22/2019

After two days of silence since his administration fired an employee for his ant-Semitic social media posts, New Jersey Gov. Phil Murphy refused to say who hired Jeffrey Dye and whether he personally knew of Dye’s criminal history. Murphy may continue to face questions about Dye, just as he has about other people with questionable backgrounds who were hired by his administration. The governor and his top-ranking officials were unable to answer who had hired Al Alverez at the Schools Development Authority last year even though Alvarez had been accused of sexual assault, an allegation he denies and for which he was never charged. Murphy has also refused to say whether he knew about a top aide’s connection to a campaign finance scandal in Bermuda.

New York – A Lobbyist Gave $900,000 in Donations. Whose Money Is It?
EMN News – J. David Goodman (New York Times) | Published: 8/26/2019

Since 2014, David Rich has doled out more than 200 campaign contributions totaling over $900,000. Rich is not a billionaire; he is the in-house lobbyist for the Greater New York Hospital Association, the state’s most powerful hospital and health system trade association. His contributions go to Democratic and Republican candidates alike, and the donations have one thing in common: they seem to line up with the interests of his employer. Although the nonprofit hospital association is free to make political contributions without an annual cap, it gives nothing to individual candidates, essentially allowing Rich’s personal donations to speak for the organization. That setup seems structured to enhance the profile and influence of Rich, who is responsible for the association’s federal, state, and local advocacy.

North Carolina – ‘Horrific Abuse of Office’: Wanda Greene gets 7 years for wide-ranging corruption
Ashville Citizen Times – Jennifer Bowman, John Boyle, and Mackenzie Wicker | Published: 8/28/2019

Calling her the “architect” of a culture of corruption in Buncombe County, a federal judge sentenced former top administrator Wanda Greene to seven years in prison for wide-ranging corrupt activity that she committed while heading one of North Carolina’s fastest-growing counties. She was ordered to also pay a $100,000 fine. Greene admitted to using county-issued credit cards to make thousands of dollars of personal purchases. She also admitted to fraudulently claiming Buncombe County as her own business on tax forms and used money set aside for settling a civil rights lawsuit to instead buy valuable life insurance policies for herself and other employees. Prosecutors say their investigation into Buncombe County corruption is ongoing.

North Carolina – Two Candidates for Governor Can Take Unlimited Donations. One Can’t.
Durham Herald-Sun – Colin Campbell | Published: 8/27/2019

A provision in a North Carolina law is allowing wealthy donors to make unlimited contributions that are being funneled into the two leading campaigns for governor, finance records show. Gov. Roy Cooper and Lt. Gov. Dan Forest have benefited from Council of State affiliated party committees, which allows them to solicit and accept donations of any size in collaboration with other statewide elected office holders from their party. The money is then used to purchase core services such as advertising and consultants for the contenders’ main campaign organizations. It is an advantage that the third candidate in the race, Rep. Holly Grange, does not have because all of her supporters are limited to the $5,400 maximum contribution.

Oklahoma – A Senator’s Lake House vs. a Town Fighting Flooding
MSN – Sarah Mervosh (New York Times) | Published: 8/27/2019

For years, the town of Miami, Oklahoma, has fought a losing battle against a wealthy neighboring community near Grand Lake, a popular vacation spot, where high water makes for better boating but leaves little room for overflow when it rains. With heavy rains this year, the city of Miami and local Native American tribes say they were again left to pay the price when floodwater clogged upstream, damaging their homes, businesses, and ceremonial grounds. Now, the battle has escalated to the halls of Congress, after one of the lake’s residents, U.S. Sen. James Inhofe, got involved. After decades of debate, local leaders had pinned their hopes on a rare chance to ask a federal agency to help stop the flooding. But Inhofe, who is known to swim and fly planes around the lake, introduced legislation that would hamstring that agency.

Pennsylvania – Woman Who Accused Ex-Pa. Lawmaker of Rape ‘Credible,’ But No Charges Will Be Brought, DA Says
Philadelphia Inquirer – Angela Couloumbis and Brad Bumsted | Published: 8/26/2019

Dauphin County District Attorney Fran Chardo said he believed a woman who accused a onetime Pennsylvania legislator of rape was “credible,” but it was not in the public interest to prosecute. Chardo, who investigated the sexual assault allegations against former state Rep. Brian Ellis, said a grand jury recommended no criminal charges but suggested ways to strengthen the Legislature’s policies on investigating sexual misconduct. He said there were complications to the case, including the woman’s inability to recall what happened the night of the alleged assault – she has said she believes she was drugged, which resulted in memory loss – as well as Ellis’ decision to invoke his right not to testify before the grand jury. “This whole experience has changed me fundamentally as a human being,” the accuser said in an interview. “It’s not just what happened to me, it’s the whole process.”

Texas – Local City Councilman’s One-Finger Salute Stirs Controversy
KWTX – Chelsea Edwards | Published: 8/22/2019

Copperas Cove Councilmember Charlie Youngs was caught on camera sticking his middle finger up while colleague Kirby Lack was talking during a meeting. Youngs said he should not have made the obscene gesture, and said he was actually flipping off someone in the audience who threatened to hurt him last December. Lack said if Youngs does not resign by the next council meeting, he is taking the issue up with the Texas Ethics Commission.

Texas – Michael Quinn Sullivan’s Secret Audio of Texas House Speaker Blurs Line Between Journalism, Activism
Dallas News – Rebekah Allen | Published: 8/22/2019

For the past month, Michael Quinn Sullivan has been the narrator of this year’s most explosive Texas political firestorm. On his website the Texas Scorecard, Sullivan broke the news of a scandal involving state House Speaker Dennis Bonnen, which forced the lawmaker to publicly apologize for trashing his colleagues in a secret meeting. Sullivan boats that he is a watchdog, shedding light on politicians behaving badly. At the same time, he refuses to release his exclusive recording of his meeting with Bonnen. For years, Sullivan has been fighting to operate on this knife’s edge, one where he can freely continue his work influencing lawmakers and donating money to candidates, while labeling himself a member of the media.

Washington DC – The Little Firm That Got a Big Chunk of D.C.’s Lottery and Sports Gambling Contract Has No Employees
Washington Post – Steve Thompson | Published: 8/28/2019

The Greek company Intralot, which received a $215 million contract to bring sports gambling to the District of Columbia and to continue running its lottery, says more than half the work will go to a small local firm, a condition that helped the gaming giant win the no-bid contract. The firm, Veterans Services Corp., will “perform the ENTIRE subcontract with its own organization and resources,” according to a document signed by an Intralot executive. City law requires companies with large public contracts to subcontract some work to small local businesses to grow the local economy. But Veterans Services appears to have no employees, according to interviews and records. Until recently, the company’s website touted executives who did not work there.

West Virginia – Is It Unconstitutional to Sleep in Your Home? For a Governor, Perhaps
New York Times – Campbell Robertson | Published: 8/22/2019

For over a year in West Virginia courtrooms, and longer than that among lawmakers and pundits, a debate has been bubbling about where the state’s governor spends his nights. Not that the facts are in much dispute: Most everyone concurs that Gov. Jim Justice does not spend them in Charleston, the capital. The question is whether that arrangement is allowed. The debate returned to court for a hearing in a lawsuit brought by a Democratic lawmaker. The suit, which seeks a court order requiring the Republican governor to reside in Charleston, is based on a clause in the West Virginia Constitution, which declares that all state executive officials except for the attorney general shall “reside at the seat of government during their terms of office.” The argument about the governor’s residence is the tip of a much larger and broader debate over his tenure.

August 16, 2019 • Written by Jim Sedor

News You Can Use Digest – August 16, 2019

National/Federal At Def Con, Hackers and Lawmakers Came Together to Examine Holes in Election Security Seattle Times – Taylor Telford (Washington Post) | Published: 8/12/2019 Hackers came had come to the DefCon computer security conference for a chance to probe voting […]

National/Federal

At Def Con, Hackers and Lawmakers Came Together to Examine Holes in Election Security
Seattle Times – Taylor Telford (Washington Post) | Published: 8/12/2019

Hackers came had come to the DefCon computer security conference for a chance to probe voting machines used in U.S. elections. Def Con’s Voting Village, and the conference at large, has become a destination not only for hackers but also for lawmakers and members of the intelligence community trying to understand the flaws in the election system that allowed Russian hackers to intervene in the 2016 election and that could be exploited again in 2020. Harri Hursti, one of the event’s organizers, said almost all of the machines at the conference were still used in elections despite having well-known vulnerabilities that have been more or less ignored by the companies that sell them.

Donor with Deep Ukraine Ties Lent $500,000 to Biden’s Brother
Politico – Ben Schreckinger | Published: 8/15/2018

A donor with deep ties to Ukraine loaned Joe Biden’s younger brother $500, 000 at the same time the then-vice president oversaw U.S. policy toward the country. The 2015 loan came as Biden’s brother faced financial difficulties related to his acquisition of a multimillion-dollar vacation home, nicknamed “the Biden Bungalow,” in South Florida. There is no indication that the loan influenced Joe Biden’s official actions, but it furthers a decades-long pattern by which relatives of the former vice president have leaned on his political allies for money and otherwise benefited financially from the Biden name.

Hickenlooper Drops Presidential Bid, Says He’ll Give ‘Serious Thought’ to a Senate Run
Roll Call – Griffin Connolly | Published: 8/15/2019

Former Colorado Gov. John Hickenlooper ended his campaign for the 2020 Democratic presidential nomination and said he will consider a run against U.S. Sen. Cory Gardner in a battleground state that Democrats need to win to take control of the chamber. Hickenlooper, who espouses a tempered brand of liberal politics, failed to gain much national traction in his presidential bid. By the time he dropped out, he was not on pace to reach the 130,000-donor benchmark to qualify for the next presidential debates. If he enters the Senate race, Hickenlooper will become the immediate front-runner in a Democratic primary field that already has 12 candidates.

How a Trump Ally Tested the Boundaries of Washington’s Influence Game
MSN – Kenneth Vogel (New York Times) | Published: 8/13/2019

Elliot Broidy, who after having been shunned by some Republicans in the wake of his 2009 guilty plea to giving nearly $1 million in illegal gifts to New York State officials to help land a $250 million investment from the state’s pension fund, had worked himself into Donald Trump’s inner circle as a top fundraiser for his 2016 campaign and inauguration. The stature he suddenly assumed when Trump won the election allowed him to position himself as a premier broker of influence and access to the new administration. In the process, his international business came to overlap with his efforts to influence government policy in ways that have now made him the subject of an intensifying federal investigation. Broidy’s ascent was also further evidence of how Trump came to rely on people whose backgrounds and activities would have raised red flags in other campaigns and administrations.

‘If You’re a Good Worker, Papers Don’t Matter’: How a Trump construction crew has relied on immigrants without legal status
MSN – Joshua Partlow and David Fahrenthold (Washington Post) | Published: 8/9/2019

For years, a roving crew of Latin American employees has worked at Trump Organization properties throughout the country. Their ranks included workers who entered the United States illegally, according to two former members of the crew. Another employee, still with the company, said that remains true today. The hiring practices are the latest example of the chasm between President Trump’s derisive rhetoric about immigrants and his company’s long-standing reliance on workers who cross the border illegally. It also raises questions about how fully the Trump Organization has followed through on its pledge to more carefully scrutinize the legal status of its workers, even as the administration launched a massive raid of undocumented immigrants, arresting about 680 people in Mississippi recently.

Interior Centralizes Ethics Reviews After Recent High-Profile Probes
The Hill – Rebecca Beitsch | Published: 8/14/2019

The Department of the Interior will be centralizing ethics reviews across its many agencies at its headquarters, following years of ethics investigations centered on many of the department’s top staff. Ethics officials at the Bureau of Land Management, the National Park Service, and others will report to ethics officials based at Interior’s headquarters rather than agency directors. Scott de le Vega, director of Interior’s Departmental Ethics Office, said the change was designed to ensure department’s 70,000 employees are getting consistent ethics advice regardless of which branch of the department they serve. But ethics officials who reviewed the plan criticized its broad focus on all agency employees rather than the high-level officials currently being investigated for ethical lapses.

Lobbyists Race to Cash in on Cannabis Boom
The Hill – Alex Gangitano | Published: 8/11/2019

Lobbying firms are taking advantage of the cannabis boom as a number of bills on the industry move through Congress and state Legislatures. As businesses look for help dealing with new legislative and regulatory challenges, K Street is rushing to capitalize, highlighted by the highest-grossing firm, Brownstein Hyatt Farber Schreck, launching a new “Cannabis and Industrial Hemp Industry Group.”

Trial of Former Obama White House Counsel Gregory Craig Highlights Crackdown on Foreign-Influence Industry
Washington Post – Spencer Hsu | Published: 8/12/2019

In charging one of Washington, D.C.’s most prominent attorneys, Gregory Craig, with lying in connection with his work for the Ukraine government at a leading law firm, the Justice Department signaled a new era for the Foreign Agents Registration Act, a once nearly dormant law that since 2017 has been invoked in more than 20 federal prosecutions aimed at combating foreign interference in U.S. politics. The charge against Craig stems from his alleged public relations work, rather than lobbying, while with the law firm Skadden, Arps, Slate, Meagher & Flom. He is accused not of failing to register as a foreign agent under the law, but with lying and withholding information from Justice officials seeking to determine whether he was required to register.

Trump’s Opponents Want to Name His Big Donors. His Supporters Say It’s Harassment.
MSN – Katie Rogers and Annie Karni (New York Times) | Published: 8/9/2019

Calling out the people who fund campaigns is not a new tactic in politics, but the question of how much should be publicly disclosed about those donors has been an issue that Republicans have repeatedly raised in recent years. While the U.S. Supreme Court ruled in the Citizens United case to uphold public disclosure, with Justice Antonin Scalia arguing later that without such revelation “democracy is doomed,” Republicans and wealthy allies have argued it results in donor harassment and has a chilling effect on free speech. The Supreme Court’s support for campaign finance disclosure laws has a built-in exemption for people who can show a realistic threat of harassment, and the renewed scrutiny on contributors to President Trump has also raised questions about what qualifies as donor harassment and who is entitled to privacy.

Canada

Canada – Trudeau Breached Conflict of Interest Act, Says Ethics Commissioner
Canada.com; Canadian Press – | Published: 8/14/2019

Canada’s ethics commissioner, Mario Dion, found Prime Minister Justin Trudeau violated the Conflict of Interest Act by improperly pressuring former Attorney General Jody Wilson-Raybould to halt the criminal prosecution of SNC-Lavalin. Dion said Trudeau’s attempts to influence Wilson-Raybould on the matter violated the law that prohibits public office holders from using their position to try to influence a decision that would improperly further the private interests of a third party. Dion found little doubt that SNC-Lavalin would have benefited had Trudeau succeeded in convincing Wilson-Raybould to overturn a decision by the director of public prosecutions, who had refused to invite the engineering giant to negotiate a remediation agreement in order to avoid a criminal prosecution on fraud charges related to contracts in Libya.

From the States and Municipalities

Alabama – Alabama Ethics Commission Says Airport Authority Employees Fall Under Ethics Law
AL.com – Mike Cason | Published: 8/7/2019

The Alabama Ethics Commission adopted an advisory opinion that employees of airport authorities are public employees and therefore subject to the state ethics law. Attorneys for the Birmingham and Huntsville airport authorities told the Ethics Commission that airport workers are not public employees because they are paid with funds generated by the airports, not with state, county, or municipal funds. The commission concluded otherwise. According to the opinion, the fees airport authorities collect from airlines, concessionaires, and other users of airport property are considered “state, county, or municipal funds” because the Legislature grants the authorities the ability to collect those fees for a specific public purpose.

Florida – Amid Misconduct Inquiry, NRA Lobbyist Marion Hammer Says She’s Not a Lobbyist
Florida Bulldog – Dan Christensen | Published: 8/15/2019

When is a registered lobbyist not a lobbyist in Florida? If powerful National Rifle Association (NRA) lobbyist Marion Hammer gets her way, it is when she says so. Hammer has been the NRA’s Florida lobbyist since at least2006, yet despite being paid handsomely – $270,000 last year alone – she has not filed with the Florida Senate any of the required quarterly compensation reports. Sen. Perry Thurston and Rep. Anna Eskamani filed formal complaints with the state ethics commission and Senate and House oversight authorities seeking investigations. Thurston has said Hammer “was indicating that she was a consultant and not a lobbyist” and therefore was not required to file lobbyist compensation reports.

Florida – Disney World Offers Florida Politicians a Sneak Peek at Star Wars Attraction, Spawning Ethics Questions
Orlando Sentinel – Steven Lemongello and Ryan Gillespie | Published: 8/15/2019

Walt Disney World invited state lawmakers and other officeholders to a “community leader preview” for its Star Wars: Galaxy’s Edge attraction. It is the hottest ticket in town not yet available to the general public. The event at Disney’s Hollywood Studios is not free, with invitees needing to pay $170, plus $25 parking, to attend the three-hour preview. State ethics laws are strict about what public officials and employees can accept, stating they cannot “solicit or accept anything of value to the recipient, including a gift, loan, reward, promise of future employment, favor, or service, based upon any understanding that [their] vote, official action, or judgment … would be influenced thereby.” Disney spent $28 million on state elections during the 2018 cycle and lawmakers have dealt with numerous issues related to Disney. County and city officials also deal with Disney on a regular basis.

Florida – Florida’s ‘Broken’ Legislature: ‘Session too quick, term limits too short and lawmakers paid too little’
Orlando Sentinel – Steven Lemongello | Published: 8/12/2019

Critics have asked why Florida’s Legislature operates the way it does. It has one of the nation’s shortest sessions despite being the third-largest state, and some of the strictest term limits. Special sessions are generally rare, and the result is what Rep. Carlos Guillermo Smith calls “a mad dash to sine die, with bills rushed through without being read and vetted by the public.” Many lawmakers and experts say the status quo is not going anywhere, either because they believe the process is working as intended or voters have no appetite for such reforms or for politicians adding years to their time in Tallahassee.

Florida – ‘No Probable Cause’ Matt Gaetz Violated Florida Bar Rules in Tweets at Michael Cohen
Tampa Bay Times – Steve Contorno | Published: 8/14/2019

U.S. Rep. Matt Gaetz will not face discipline from the Florida Bar for posting menacing messages on social media aimed at President Donald Trump’s lawyer and fixer Michael Cohen. Florida Bar spokesperson Francine Walker said the organization found “no probable cause” that Gaetz violated its rules for lawyers. The House ethics committee is also reviewing the incident.

Indiana – Inspector General OKs Casino Boss’s Private Flights for Gov. Eric Holcomb
Indianapolis Star – Tony Cook | Published: 8/8/2019

Indiana Gov. Eric Holcomb violated no ethics rules when a casino executive treated him to private jet flights last year. The flights in 2018 to Republican Governors Association events in Aspen, Colorado, and Scottsdale, Arizona, were together valued at more than $55,000. They gave Spectacle Entertainment Chief Executive Officer Rod Ratcliff and his business partners hours of exclusive access to Holcomb and his wife at a time when Ratcliff was seeking big changes to the state’s gaming laws that would benefit his company. Indiana Inspector General Lori Torres, who is appointed by Holcomb, determined the governor did not have to disclose the flights as a gift because they were designated as in-kind contributions to the Republican Governors Association, not to Holcomb.

Kentucky – Frankfort Resident Named Executive Director of Ky. Legislative Ethics Commission
State Journal; Staff – | Published: 8/13/2019

Laura Hromyak Hendrix was tapped to serve as executive director of the Kentucky Legislative Ethics Commission following the retirement of John Schaaf. Hendrix, who presently serves as the commission’s legal counsel, will assume the post September 1. the post Sept. 1. “Laura’s knowledge of the ethics law and her legal experience will allow the commission to continue its tradition of advising on and enforcing the ethics laws in a fair and nonpartisan manner,” Commission Chairperson Anthony Wilhoit said.

Kentucky – Jerry Lundergan’s Trial Over Illegal Contributions to Daughter’s Campaign Begins Tuesday
Louisville Courier-Journal – Tom Loftus | Published: 8/12/2019

Jerry Lundergan, a prominent player in Kentucky Democratic Party politics for 40 years, faces trial on charges he conspired to funnel illegal corporate contributions to the campaign of his daughter, Alison Lundergan Grimes, for the U.S. Senate in 2014. Lundergan is also accused of falsifying campaign finance records to conceal what his indictment itemizes were more than $206,000 in services his company provided to Grimes’ campaign. Jurors in the case may hear arguments involving the complexities of campaign finance laws, the practices of how campaigns report contributions and expenses, and the impact of how court rulings have shaken up the world of campaign finance.

Michigan – ‘An Easy Sell’: Inman texts point to PAC dominance in Michigan politics
Detroit News – Jonathan Oosting | Published: 8/8/2019

Michigan Rep. Larry Inman was planning to vote against a controversial initiative to repeal the state’s prevailing wage law when a top House Republican aide shared a dire prediction. Democratic voters would not “come to your side” and “you will shut down any incentive for the big donors to give” to your reelection campaign, Dan Pero, chief of staff to then-House Speaker Tom Leonard, told Inman in a text on the day of the vote. The text messages, disclosed by federal prosecutors as Inman heads toward trial for allegedly trying to sell his vote to a union group opposed to the repeal, highlight the outsized influence interest group donors have on Michigan politics and how PAC contributions can influence legislative votes.

Michigan – Millions Meant for Repairing Michigan Roads Go Back to Trucking Industry
Detroit Free Press – Paul Egan | Published: 8/11/2019

Money from Michigan’s vehicle registration fees – close to $8 million since 2012 – is paid in grants to the Center for Truck Safety, a nonprofit charged with educating truckers and the public. It is an arm of the Michigan Trucking Association, the industry’s lobbying group that has fought efforts to reduce the state’s highest-in-the-nation gross weight limits for trucks. The center shares Lansing office space and has also shared employees with the association. It uses some of the state money to pay the lobbying organization rent, services such as legal advice and personnel management, and payments on a loan. Nearly all of the truck safety center’s officers and directors are also directors of the trucking association and the state briefly cut off funding to the center after finding some state money was being used to pay expenses related not to the safety center, but to the trucking association.

Missouri – Ex-St. Louis County Executive Gets Nearly 4 Years in Prison
AP News – James Saltzer | Published: 8/9/2019

Former St. Louis County Executive Steve Stenger was sentenced to almost four years in prison and fined $250,000 for steering county business to a campaign donor in exchange for thousands of dollars in contributions. Stenger has also surrendered his law and accounting licenses and paid about $130,000 in restitution. Three others also pleaded guilty as part of the scheme – Stenger’s chief of staff, Bill Miller; businessperson John Rallo, who donated to Stenger’s campaign with the expectation his companies would get county contracts; and Sheila Sweeney, whom Stenger appointed as head of the county’s economic development agency.

Missouri – Missouri Police Chiefs Lobbyist Quits After Audit Blasts No-Bid Contract He Helped Secure
St. Louis Post-Dispatch – Jack Suntrup | Published: 8/12/2019

Sheldon Lineback, the longtime lobbyist for the Missouri Police Chiefs Association, canceled his registration with the Missouri Ethics Commission after a state audit criticized his role in a no-bid contract scheme that cost taxpayers $74,000. Auditor Nicole Galloway said former Department of Public Safety Director Drew Juden steered a $58,000 contract to the Missouri Police Chiefs Charitable Foundation, which is associated with the police chiefs association. The contract was for providing fingerprinting equipment to local police departments, a job the Missouri State Highway Patrol had done in the past at no additional cost to the state. The group was allowed to keep $1.25 million in state money, meant for purchasing the equipment, in its coffers for eight months, costing the state approximately $16,000 in interest revenue, and presumably benefiting the nonprofit. Juden is the former president of the Missouri Police Chiefs Association.

Montana – Fed Appeals Court Upholds Montana’s Landmark Campaign-Finance Disclosure Law
AP News – Matt Volz | Published: 8/12/2019

The Ninth U.S. Circuit Court of Appeals upheld a provision of Montana’s campaign finance law, ruling any group distributing material that merely mentions a candidate within 60 days of an election can be required to register with the state and disclose its spending and, in some cases, its donors. The state law requires any group to register and file disclosures once it spends $250 or more on ads or mailers referring to a candidate, political party, or ballot issue within 60 days of an election. That includes organizations registered as nonprofits under section 501(c)4 of the tax law that generally are not required to disclose their donors and spending. The National Association of Gun Rights argued unsuccessfully that the U.S. Constitution bars states from requiring that kind of disclosure for informational ads, such as the kind it proposed mailing.

New Hampshire – Bipartisan Bill to Create Redistricting Panel Vetoed by New Hampshire Governor
Governing – Kevin Landrigan (Manchester Union Leader) | Published: 8/12/2019

New Hampshire Gov. Chris Sununu vetoed a bill to create an independent commission proposed to come up with the best way to redraw legislative, congressional, and executive council districts after the 2020 elections. Sununu said the measure was well-intentioned but would have an “unaccountable” panel drawing these lines after they were picked by “party bosses.” This plan would allow lawmakers to vote on redistricting maps but would keep them out of the process of drawing them. Instead, maps would be created by a 15-member commission selected from a pool of applicants collected by the secretary of state.

New Hampshire – NH Attorney General: Contributions from limited partnerships, LLPs remain legal in state elections
WMUR – John DiStaso | Published: 8/9/2019

The New Hampshire attorney general’s office cleared the way for candidates for state offices to continue receiving contributions from corporate entities known as limited partnerships and limited liability partnerships. The office responded to a complaint filed against the Friends of Chris Sununu, the governor’s campaign operation, by Granite State Progress. It charged that three contributions to Sununu in 2017 violated a state law that includes donations by partnerships in a list of prohibited contributions. The group said Sununu’s campaign violated the law by accepting the money. Assistant Attorney General Nicholas Chong Yen said the office determined at least nine years ago that it could no longer enforce bans on contributions from partnerships and limited liability partnerships.

New Jersey – Two Unions Secretly Gave $3.6 Million to Phil Murphy’s Group During Millionaires Tax Push
Bergen Record – Ashley Balcerzak | Published: 8/11/2019

Two powerful unions donated a combined $3.6 million to New Jersey Gov. Phil Murphy’s secretive “dark money” nonprofit. The state’s largest teachers’ union, the New Jersey Education Association, wrote a $1 million check in April, a month after Murphy’s 2019 budget announcement the union called “progressive” and “people-focused.” That donation is on top of the $2.5 million the union gave to New Direction New Jersey in 2018. A local branch of the Service Employees International Union pitched in an additional $150,000 in June 2018. Officials with New Direction New Jersey had said it would report who was giving the group money. The nonprofit reversed its pledge later, citing a “toxic political environment,” and refused to name who bankrolled its push to pass Murphy’s priorities.

North Carolina – After El Paso, the ‘Send Her Back’ Chant Echoes to Some as a Prelude to Murder
MSN – Griff Witte (Washington Post) | Published: 8/13/2019

Samar Badwan, a Greenville, North Carolina resident, watched as 8,000 neighbors and fellow citizens jammed an arena to serenade President Trump with chants of “Send her back,” a response to Trump’s insistence that a Muslim, Somali American member of Congress should “go back” to the land of her birth. That visit, and that chant, continues to reverberate loudly in Greenville nearly a month later, particularly for those, like Badwan, who see themselves as targets of a campaign to whip up xenophobia and hate. After the El Paso shootings, in which 22 people were killed by a gunman who parroted Trump’s warnings about an “invasion” of immigrants, the words carry a particularly ominous resonance: as a prelude to murder.

North Dakota – Panel Picks Members of North Dakota Ethics Commission
Grand Forks Herald – John Hageman | Published: 8/8/2019

A committee charged with selecting members of North Dakota’s new state ethics commission finalized its picks, marking a major step toward implementing voter-approved rules against corruption. Their terms will begin September 1. Voters created the commission through a constitutional amendment last year. Despite criticisms of a Republican-backed implementation bill approved by state lawmakers this year, the commission will be able to write rules on transparency, corruption, elections, and lobbying as well as investigate allegations of wrongdoing.

North Dakota – Top North Dakota Officials Unfazed by State Money Awarded to Ethics Commissioner’s Tribal College
Grand Forks Herald – John Hageman | Published: 8/13/2019

North Dakota’s governor and Senate leaders were unfazed that one of their picks for the state’s new ethics commission leads a tribal college that has received more than $2 million in state grants in recent years, which one lawmaker argued is a conflict-of-interest. Cynthia Lindquist, president of the Cankdeska Cikana Community College, was selected as one of five members of the voter-approved ethics commission. Gov. Doug Burgum’s spokesperson said the governor’s office was aware the tribal college had received state dollars but noted it is primarily federally funded.

Oregon – The ACLU Helped Oregon Stay Awash in Campaign Cash. It’s Having Second Thoughts.
Portland Oregonian – Rob Davis | Published: 8/7/2019

The last time Oregon voters were asked whether campaign contributions should be limited, a prominent liberal group was among the most vocally opposed: The American Civil Liberties Union of Oregon. It had an impact. Voters in 2006 said no. Thirteen years later, with a similar measure on campaign donations heading to voters next year at the behest of the state Legislature and Gov. Kate Brown, the ACLU has dropped its absolute opposition to contribution limits. The shift eliminates one major obstacle to ending Oregon’s outlier status as one of five states with no caps on campaign money.

Pennsylvania – Philly’s New Voting Machine Contract in Jeopardy Because Vendor Failed to Disclose Use of Lobbyists, Campaign Contributions
Philadelphia Inquirer – Jonathan Lai | Published: 8/14/2019

Philadelphia City Solicitor Marcel Pratt notified the acting board of elections that Election Systems & Software (ES&S) violated the law by failing to disclose its use of lobbyists and the lobbyists’ campaign contributions to the two city commissioners on the board who selected the company for a contract to provide new voting machines. If the board decides to continue with the contract, ES&S will be liable for a $2.9 million fine, Pratt said, adding that it has agreed to pay the penalty if the contract proceeds. Using lobbyists is not illegal, and Pratt noted ES&S could have disclosed the lobbying and the campaign contributions without being disqualified from the bidding and selection process. The other finalist, Dominion Voting Systems, also did not disclose its use of a lobbyist.

Pennsylvania – Pittsburgh-Area Lobbyist Charged with Defrauding Clients, Forging Grant Documents
WTAE – Bob Mayo | Published: 8/12/2019

Lobbyist Joseph Kuklis, chief executive officer of Wellington Strategies, was charged with running a corrupt organization, theft by deception, forgery, and fraudulent business practices by the Pennsylvania attorney general’s office. The criminal complaint says investigators seized records of Wellington Strategies and allegedly found evidence of forgeries in the trash of Kuklis’s home. Kuklis allegedly falsely represented to nonprofits and businesses that he had obtained state grants for them and forged letters and documents to mislead clients who paid him for his work.

Tennessee – As Tennessee Makes Voter Registration More Difficult, Activists Consider What’s Next
Governing – Matt Vasilogambros (Stateline) | Published: 8/14/2019

Less than a year after a coalition of groups, led by the nonprofit Tennessee Black Voter Project, conducted a statewide voter registration drive that accumulated 91,000 applications, activists face a daunting obstacle: A new state law that seeks to curb mass voter registration efforts by imposing criminal and financial penalties for turning in error-filled forms or failing to register with the state and undergo training. The new Tennessee law has nonprofits and voting rights activists scrambling ahead of the 2020 presidential election, as they attempt to understand new regulations that could lead to thousands of dollars in fines and even jail time.

Tennessee – Lawmakers, Political Groups Owe State $1.9M in Fines for Violating Campaign Finance, Ethics Rules
The Tennessean – Joel Ebert | Published: 8/14/2019

Two Tennessee agencies that serve as watchdogs of elected officials, candidates, and political organizations are owed nearly $1.9 million. The average Tennessean could lose their home, be subject to liens, face collections agencies, or go to jail if tickets or taxes go unpaid. But that is not the case for the candidates, officials, and organizations that have been fined by the Registry of Election Finance and the Tennessee Ethics Commission. Instead, the state’s attorney general is tasked with collecting the two agencies’ unpaid fines.

Tennessee – State Election Registry to Formally Audit Bill Ketron’s Campaign Finance Reports
The Tennessean – Elaina Sauber | Published: 8/14/2019

The Tennessee Registry of Election Finance formally authorized an audit of former state Sen. Bill Ketron and his campaign finance committees. Those include his committee while seeking office as Rutherford County mayor, his state Senate committee, and his PAC. Ketron, who was elected Rutherford County mayor last year, faces $60,000 in unpaid civil penalties. The fines are primarily related to late filings of his campaign finance reports. Ketron and his campaign treasurer are responsible for ensuring campaign finance reports are filed on time. But his campaign treasurer and daughter, Kelsey Ketron, is facing her own financial troubles and possible criminal charges.

Texas – Texas Democrats Sue Over Secret Meeting Between House Speaker Dennis Bonnen, Empower Texans CEO
Dallas News – James Barragan | Published: 8/8/2019

The Texas Democratic Party is suing House Speaker Dennis Bonnen and conservative activist Michael Quinn Sullivan, alleging they created an unregistered PAC and violated other state election laws. The lawsuit stems from a June meeting Sullivan had with Bonnen and Republican Caucus Chairperson Dustin Burrows. In the meeting, Sullivan has said, Bonnen and Burrows offered to give writers at his website, Texas Scorecard, House media credentials in the next legislative session in exchange for Sullivan’s political group targeting 10 GOP incumbents in next year’s primary elections. Sullivan said he rebuffed the offer. But Democrats allege that meeting and any agreements reached in it show a coordinated effort “between political actors intended to influence the election or defeat of specific candidates” and amounts to an unregistered political committee as defined by state law.

Utah – Draper City Council Candidate Booted from Race After Showing Up One Minute Past Filing Deadline
Salt Lake Tribune – Alison Berg | Published: 8/12/2019

When Hubert Huh received a call August 6 from his state representative, Jeffrey Stenquist, reminding him of the 5 p.m. deadline for filing a campaign finance disclosure form, Huh, a Draper City Council candidate, sped as fast as he could to City Hall with his form. Arriving at 5:01 p.m., the city recorder told him he was too late and would be disqualified from the race. The deadline was 5 p.m. Though Huh was only a minute past deadline, Draper spokesperson Maridene Alexander said the city follows the state code strictly, which requires a finance disclosure form be turned into the clerk or recorder’s office by 5 p.m. the day it is due.

Washington – Seattle Politics Without Corporate Money? Council Member Fires Off Long-Shot Proposal
Crosscut – David Kroman | Published: 8/14/2019

In an effort sure to face a bumpy legal road, Seattle City Councilperson Lorena González has drafted legislation aimed at stemming the growing influence of big money donors in municipal elections. The bill would limit how much donors could give to PACs while placing stricter regulations on how foreign money, including donations from U.S. companies with foreign owners, shapes city politics. It would also require PACs to disclose how their money is spent. The three proposals in González’s package share the goal of curbing the effect of money on local elections, a so-far quixotic effort to find gaps in the U.S. Supreme Court’s Citizens United decision, which is credited with opening the floodgates on corporate contributions to elections.

Washington DC – D.C. Lawmaker Jack Evans Fined $20,000 in Ethics Case Involving Outside Work
Washington Post – Fenit Nirappil | Published: 8/8/2019

District of Columbia Councilperson Jack Evans was fined $20,000 by the city’s ethics agency for using government resources and touting his influence as an elected official while soliciting employment from local law firms. The settlement is the latest fallout for the city’s longest-serving lawmaker who has been embroiled in an ethics scandal. Emails that Evans sent from his council office showed he tried to land jobs at law firms in 2015 and 2018. In business proposals, he highlighted an ability to attract private clients as a lawmaker and as board chair of the regional transit agency. The Board of Ethics and Government Accountability determined there was “substantial evidence” Evans’ contact with the law firms violated rules that prohibit the use of government resources for personal reasons and using the prestige of office for private gain.

West Virginia – Welcome to the Greenbrier, the Governor-Owned Luxury Resort Filled with Conflicts of Interest
ProPublica – Ken Ward Jr. (Charleston Gazette-Mail) | Published: 8/15/2019

Ethics officials have said West Virginia laws never contemplated someone like Gov. Jim Justice. With his decision to hold his inauguration ball at The Greenbrier, a palatial resort the governor owns, Justice ushered in a new era of politics in West Virginia, one in which it is hard to tell where the governor’s business interests end, and state government begins. All told, more than $1 million, half of the inaugural fund, went to Justice’s Greenbrier Hotel Corp. The Greenbrier represents only a slice of Justice’s holdings, estimated to be worth as much as $1.5 billion. But the iconic resort’s outsized role in West Virginia politics has made it an unparalleled ethical thicket for the governor.

Wyoming – Wyoming Is Committed to a ‘Citizen Legislature.’ But the Format Can Limit Who Is Able to Participate.
Casper Star-Tribune – Nick Reynolds | Published: 8/12/2019

Wyoming’s citizen Legislature has always been a point of pride, harkening back to a simpler time in the state’s history where government was radically by the people, for the people. According to the National Conference of State Legislatures, just 4 states – Wyoming, Montana, and the Dakotas – boast what can be considered “citizen Legislatures,” keeping the session limits short, the pay low, and legislative staff limited in order to shut out the trappings of big government. For opponents of a per diem raise for lawmakers, this is something worth preserving, both in maintaining the state’s culture of conservatism and by being fiscally prudent. But some believe the concept of the Legislature could use some updating, particularly as its members look less and less like the state they represent.

August 15, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance Washington: “Seattle Politics Without Corporate Money? Council Member Fires Off Long-Shot Proposal” by David Kroman for Crosscut Ethics Canada: “Trudeau Breached Conflict of Interest Act, Says Ethics Commissioner” by for Canada.com; Canadian Press Kentucky: “Frankfort Resident Named […]

July 23, 2019 • Written by Mario Dalessandro

Annapolis Mayor Introduces Procurement Legislation

Annapolis City Hall via Preserve Maryland

Mayor Gavin Buckley introduced a bill at a recent city council meeting outlining how the city should purchase items and services. A draft of the legislation proposes a procurement process that would create an efficient, cost-effective, and equitable system of […]

July 23, 2019 • Written by Mario Dalessandro

Maryland Launches New Electronic Procurement System

The Maryland Department of General Services launched the state’s new electronic procurement system, eMaryland Marketplace Advantage (eMMA). The eMMA system is Maryland’s new online platform used to connect the vendor community with contracting opportunities from state, county, and local government […]

July 15, 2019 • Written by Joanna Kamvouris

Missouri Gov. Signs Procurement Bill Amending Bid Solicitation Process

Missouri Gov. Mike Parson

Gov. Mike Parson signed procurement lobbying legislation on July 10, bringing changes to the state’s bid solicitation process. House Bill 1088 provides that solicitations and subsequent purchases must be publicly advertised only if a contract is worth more than $100,000. […]

Thursday’s LobbyComply News Roundup

News You Can Use Digest – October 18, 2019

Tuesday’s LobbyComply News Roundup

Canada’s Government Contracts Regulations Requires Declaration: No Frauds Committed

News You Can Use Digest – October 4, 2019

News You Can Use Digest – September 27, 2019

Tuesday’s LobbyComply News Roundup

Group Challenging Montana Campaign Order

News You Can Use Digest – August 30, 2019

News You Can Use Digest – August 16, 2019

Thursday’s LobbyComply News Roundup

Annapolis Mayor Introduces Procurement Legislation

Maryland Launches New Electronic Procurement System

Missouri Gov. Signs Procurement Bill Amending Bid Solicitation Process

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