Lobbying

“Lobbyists and Corporations, Arm-in-Arm” by Rani Molla for Bloomberg.com

“What is Shadow Lobbying? How Influence Peddlers Shape Policy in the Dark” by Libby Watson for Sunlight Foundation

Campaign Finance

“PAC Donations from Elderly Donors Draw Scrutiny” by Fredreka Schouten and Christopher Schnaars for USA Today

“George Clooney Certainly Has Raised Some ‘Obscene’ Amounts of Campaign Money” by Justin Moyer for Washington Post

Mississippi: “No Restrictions on Legislators as Mississippi House Turns Back Campaign Cash Rules” by The Associated Press for Mississippi Business Journal

Montana: “Judge Weighs Whether Low Contribution Limits Are Justified” by Matt Volz (Associated Press) for The Missoulian

Ethics

District of Columbia: “DC Schools Chief Asked Contractor for $100K” by Ben Nuckols (Associated Press) for Idaho Statesman

Elections

“New York Blowout Gives Donald Trump Big Boost in GOP Race” by Jenna Johnson and Philip Rucker for Washington Post

“Strong Showing by Clinton in Defeat of Sanders in New York Primary” by Abby Phillip, John Wagner, and Anne Gearan for Washington Post

Procurement

“Governments Struggle to Root Out Fake Minority Contractors” by Mattie Quinn for Governing

Gov. Butch Otter signed a procurement bill into law late last month, overhauling how the state makes purchases.

House Bill 538 repeals existing statutes in favor of a completely new chapter, dubbed the State Procurement Act. The Act requires training for state officers and employees, including ethics training, and modernizes purchasing procedures.

The new law takes effect July 1, 2016.

A bill revising the definition of lobbyist to include individuals attempting to influence state governmental procurement of $250,000 or more is awaiting a final vote in the California Assembly. The bill would not apply to in-house lobbyists; only consultants paid more than $2,000 a month to influence procurement would be required to register.

If passed, the new rule becomes effective January 1, 2017.

The Frederick County, MD Council has passed a new ordinance regarding county contracts and the size of the Frederick County Ethics Commission. The ordinance prohibits elected officials and certain family members for securing county government contracts.

Additionally, the ordinance increases the size of the Ethics Commission from five to seven members.

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

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

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

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

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

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

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

Lobbying

California: “L.A. Ethics Commission OKs $47,000 in Fines for Lobbying Violations” by Emily Alpert Reyes for Los Angeles Times

Michigan: “Lansing Power Brokers: Law firms, others strengthen their lobbying corps” by Lindsay Vanhulle for Crain’s Detroit Business

New Mexico: “Ethics Commission Hits Dead End in Senate Panel” by Dan Boyd for Albuquerque Journal

Utah: “Free Lunches Becoming More Rare for Utah Legislators” by Lee Davidson for Salt Lake Tribune

Campaign Finance

Alaska: “North Slope Borough Mayor Charlotte Brower Pays $35,000 Campaign Fine” by Alex DeMarban for Alaska Dispatch News

Minnesota: “Minnesota Legislators Use Campaign Funds for Child Care, Pet Urns and Travel” by J. Patrick Coolican and Maya Rao for Minneapolis Star Tribune

Ethics

California: “Taking the Oath of Office Seriously to Fight Corruption in Southeast L.A. County” by Ruben Vives for Los Angeles Times

Ohio: “Convention Center Food Contract Prompts Criminal Investigation” by Lucas Sullivan for Columbus Dispatch

Elections

“Snapchat Bets Big on Quick-Fire Approach to Campaign Coverage” by Nick Corasaniti for New York Times

“Battle over Scalia’s Replacement Already Spilling into Senate Races” by Steven Mufson and Juliet Eilperin for Washington Post

“Campaigns Secretly Prep for Brokered GOP Convention” by Ben Schreckinger for Politico

Procurement

Texas: “Some Contractors Say New Texas Disclosure Law Confusing” by   for KXAN; Associated Press

Gov. Hogan has established a commission to help update the state’s approach to procurement. Hogan said a new system was needed as the current approach is a patchwork of laws and processes resulting in unreliability and actually discourages participation to do business with the state.

The commission is comprised of 19 individuals with various backgrounds, including information technology, construction, engineering, law, and representatives from various state agencies.

The commission will be charged with standardizing interpretation of contracting codes, using new technology to make the procurement process more efficient, and simplifying the existing template Maryland uses for requesting proposals.

National:

The Gender Gap in Political Giving
New York Times – Jeremy Merrill | Published: 10/14/2015

Only about 30 percent of big donors to campaigns are women. The estimated gap in overall fundraising is even larger, because the average contribution from a man is much larger than the average for a woman. It is impossible to know from the way contributions are recorded by campaigns whether a political donation that officially comes from one person actually comes from a married couple. But the name on a political contribution still matters, for access to political figures and influence with them. In an era when big donors demand ever more access to potential future leaders, the gender gap in contributions contributes to a gender gap in political power as well.

Federal:

Dennis Hastert Reaches Plea Deal in Bank Withdrawals
New York Times – Julie Bosman | Published: 10/15/2015

Former U.S. House Speaker Dennis Hastert will plead guilty to charges he lied to the FBI about making illegally structured bank transactions as part of an effort to pay hush money to someone he wronged in the past. With the plea agreement, Hastert may be able to keep embarrassing details about his past out of the public eye but it could mean serving time in prison. Hastert was indicted in a scheme in which he paid more than $1.7 million to conceal unspecified past misconduct to someone only identified as “Individual A.” While the indictment does not detail the wrongdoing, law enforcement officials have said the money was meant to conceal sexual misconduct committed against a male student when Hastert was a high-school teacher and coach.

Nonprofit Masks Source of Ads Backing Rubio
New York Times – Jonathan Martin and Nicholas Confessore | Published: 10/11/2015

Voters in states like New Hampshire and Iowa have been left largely in the dark about who is putting the most money behind U.S. Sen. Marco Rubio’s campaign for president. Of all the television advertisements aired in support of the senator so far this year, $5.5 million worth, none have been paid for by Rubio’s own campaign. Instead, the money has flowed through a nonprofit group called the Conservative Solutions Project, formed by a former Rubio aide and now overseen in part by a Republican strategist who is close to Rubio’s campaign manager. Unlike candidates and super PACs, the nonprofit, which has raised more than $18 million, will never be required to disclose anything about its donors. While all of Rubio’s competitors are supported by a super PAC, no one is relying on a secretive nonprofit for the bulk of its advertising.

The Families Funding the 2016 Presidential Election
New York Times – Nicholas Confessore, Sarah Cohen, and Karen Yourish | Published: 10/10/2015

Just 158 families, along with companies they own or control, contributed $176 million in the first phase of the presidential campaign. Not since before Watergate have so few people and businesses provided so much early money in a campaign, most of it through channels legalized by the U.S. Supreme Court’s Citizens United decision. In marshaling their financial resources chiefly behind Republican candidates, the donors are serving as a kind of financial check on demographic forces that have been nudging the electorate toward support for the Democratic Party and its economic policies. Interviews and public documents reveal the donors are a class apart, distant from much of America while geographically, socially, and economically intermingling among themselves.

The GOP Sinks Deeper into Chaos. Can It Still Function as a Party?
Washington Post – Karen Tumulty | Published: 10/8/2015

Republicans are in an historic state of chaos. The most powerful force at work in the ­once-hierarchical GOP is anger, directed as much at its own leaders as anywhere else. First, a contingent of conservative House members effectively forced Speaker John Boehner to resign rather than face a possibly losing battle to hold on to his job. They also claimed House Majority Leader Kevin McCarthy, who had been considered the favorite to replace Boehner until he announced he is dropping out of the race. With no obvious replacement for Boehner in sight, “it is total confusion – a banana republic,” said U.S. Rep. Peter King. Parallel currents of rage have been roiling the 2016 presidential race, diminishing hopes that an eventual nominee can bring order and direction to the increasingly dysfunctional party.

Through Executive Orders, Obama Tests Power as Purchaser-in-Chief
USA Today – Gregory Korte | Published: 10/11/2015

If there is one industry that has been disproportionately impacted by President Barack Obama’s executive orders, it is federal government contractors. Since becoming president, Obama has signed at least 15 executive orders and presidential memoranda aimed at contractors, dictating their hiring and firing practices, compensation policies, and working conditions. The White House is hoping that the orders send a message to the economy at large, and have an effect far beyond the public sector. But critics of Obama’s aggressive use of the executive order say the actions will kill off small businesses and may be unconstitutional.

From the States and Municipalities:

Alabama – Jarrod Massey: Looking for a second chance after prison in bingo case
AL.com – Charles Dean | Published: 10/11/2015

Former lobbyist Jerrod Massey recently completed a prison sentence for conspiracy and bribery stemming from the role he played in attempting to buy the votes of Alabama senators. He is now telling the cautionary tale of how big money and a bigger ego to join the relatively small club of the best lobbyists in Montgomery led him to do things that ultimately put him behind bars. Massey said he justified what he was doing because of the environment he saw around him. “I was aware legally I had crossed a line,” said Massey. “I’ve gone back and trust me, I spent many nights in a prison bunk examining really, where did I go wrong, where did that start?”

Illinois – Former Chicago Public Schools Chief to Plead Guilty to Bribery Scheme
Chicago Tribune – Jason Meisner and Juan Perez, Jr. | Published: 10/8/2015

Former Chicago Public Schools Chief Executive Officer Barbara Byrd-Bennett will plead guilty to charges she gave a no-bid $20.5 million contract to a former employer in exchange for future employment and a $250,000 kickback for two relatives. According to the indictment, Byrd-Bennett steered the contract to SUPES Academy, where she once worked as a consultant. Much of the indictment centers on emails sent between SUPES Academy co-owner Gary Solomon and Byrd-Bennett that seem to make no effort to conceal the alleged scheme. In one message, which she finished with a smiley-face emoticon, Byrd-Bennett implied she needed cash because she had “tuition to pay and casinos to visit.”

Iowa – Trial Begins for Veterans of 2012 Ron Paul Campaign
Washington Post – David Weigel | Published: 10/13/2015

A federal trial is set to begin in Iowa for two aides to Ron Paul’s 2012 presidential campaign, Jesse Benton and Dimitri Kesari, accused of secretly paying a state lawmaker for his endorsement. Prosecutors say they concealed payments to former Iowa Sen. Kent Sorenson after he jumped from the Michele Bachmann campaign to the Paul campaign a few days before the January 2012 Iowa caucuses. Benton had to step away from the super PAC of U.S. Sen. Rand Paul in the wake of the indictment. Kesari, is simultaneously a suspect in a 2014 burglary at the home of a deceased Ron Paul campaign worker.

New York – Advance Group Fined $26k by Schneiderman, Campaign Finance Board
Albany Times Union – Chris Bragg | Published: 10/8/2015

A Manhattan lobbying firm was fined nearly $26,000 for improperly coordinating elements of the campaigns of two New York City Council candidates and expenditures by an animal rights group. The penalties stemmed from consulting work done by the Advance Group for Laurie Cumbo and Mark Levine, who were both elected to the council in 2013, and work done simultaneously for NYClass, an advocacy group that has pushed for a ban on the Central Park horse-carriage industry. The state attorney general’s office found NYClass used office space and staff members from the Advance Group and made expenditures on behalf of the campaigns of Levine and Cumbo. In August 2013, the New York City Campaign Finance Board warned that NYClass’s expenditures could not be considered independent.

New York – JCOPE Announces Amnesty Program for Some Lobbyists
Albany Times Union – Casey Seiler | Published: 10/13/2015

The Joint Commission on Public Ethics (JCOPE) approved a plan for a six-month amnesty and compliance program to encourage lobbyists and clients of lobbyists who have failed to submit any required filings with the agency. To qualify for the program, applicants must not have previously been contacted by JCOPE for failure to comply with filing requirements and cannot have been the subject of a criminal proceeding related to a violation of the lobbying law. Among the requirements are that applicants would be required to file their reports going back from January 1, 2013 and to submit all applicable filing fees. This amnesty would not apply to “professional” lobbyists or established clients of lobbyists.

Ohio – Court Documents: A second Redflex executive pleaded guilty in bribery conspiracy
Columbus Dispatch – Doug Caruso | Published: 10/15/2015

Federal court documents outline how Redflex Traffic Systems Vice President Aaron Rosenberg worked with lobbyist John Raphael to get the company a contract in Columbus. Rosenberg pleaded guilty to making, and hiding, campaign donations to influence city officials from 2005, when the original red-light camera contract started, through 2013. He served a year on probation as part of a deal to help federal prosecutors. Raphael will plead guilty to one count of extortion. His plea agreement says he shook down Redflex officials for campaign contributions by threatening company officials with the loss of influence and contracts.

Ohio – Ginther among Those Being Investigated Over Trip to Big Ten Title Game
Columbus Dispatch – Lucas Sullivan | Published: 10/9/2015

The Ohio Ethics Commission is investigating Columbus City Council President Andy Ginther and three other current or former council members for a lobbyist-funded trip they took to the Big Ten Championship football game last December. Ginther, Eileen Paley, Shannon Hardin, and former council member Michelle Mills have been asked to submit records. Mills resigned earlier this year for failing to report the trip on financial disclosure forms. It was paid for by lobbyist John Raphael, who has agreed to plead guilty to extortion in the federal investigation of money that Redflex Traffic Systems funneled through Raphael to some Columbus elected officials. The council members paid $250 for the trip, but the fair-market value may have been $750. State law requires elected officials to disclose the difference in the cost paid compared with the fair market value, if the difference in the value is greater than $75.

Washington – Seattle Council Candidate Alleges Political Shakedown by Developer
Seattle Times – Daniel Beekman | Published: 10/12/2015

Seattle City Council candidate Jon Grant claims the developer of a project across from City Hall tried to shake him down, and a text message sent to former Mayor Mike McGinn reveals some of what went on. Grant claims Brett Allen, a senior vice president at Triad Capital Partners, approached him at a campaign event and asked for help settling a lawsuit brought by Grant’s former employer. Grant says he was told the payoff could be that a new political committee gearing up to spend heavily against him would go away. Then Allen sought to have McGinn broker a meeting with Grant, sending the former mayor a text message that spelled out the proposed quid pro quo. McGinn endorsed Grant recently.

Wisconsin – GAB Director to GOP Lawmaker Questioning His Relationship with Ex-IRS Administrator: ‘Have You No Decency?’
Wisconsin State Journal – Mark Sommerhauser | Published: 10/13/2015

State Sen. Chris Kapenga pressed the director of the Wisconsin Government Accountability Board (GAB), Kevin Kennedy, about his relationship with former IRS administrator Lois Lerner during a hearing on a bill to revamp the board. Lerner became a frequent target of conservatives after reports indicated the IRS targeted nonprofit tea party groups for additional scrutiny under her watch. A visibly angered Kennedy responded by accusing Kapenga of using McCarthy-like tactics in the effort by Republicans to dismantle the GAB. “Have you no decency?” Kennedy asked Kapenga. “I owe you no explanation about my friendships.” Democrats assailed the bill, saying the move could lead to the same sorts of legislative scandals that triggered the GAB’s creation eight years ago.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Lobbying

Alabama: “Jarrod Massey: Looking for a second chance after prison in bingo case” by Charles Dean for AL.com

Florida: “City Council President Proposes Cellphone Ban during Meetings; Citizens Group Plans to File Lawsuit” by Christopher Hong for Florida Times Union

Campaign Finance

“The Families Funding the 2016 Presidential Election” by Nicholas Confessore, Sarah Cohen, and Karen Yourish for New York Times

“Nonprofit Masks Source of Ads Backing Rubio” by Jonathan Martin and Nicholas Confessore for New York Times

Wisconsin: “GOP Proposal Rewrites State’s Campaign Finance Laws” by Matthew DeFour for Wisconsin State Journal

Ethics

Connecticut: “In Hartford, Case of Treasurer Adam Cloud Prompts Calls to Strengthen Ethics Code” by Jeff Cohen for WNPR

South Dakota: “Democrats Plan New Push for Ethics Commission over GEAR UP” by James Nord (Associated Press) for Sioux Falls Argus Leader

Elections

“How Can an Introvert Like Jeb Bush Get Elected President?” by Amber Phillips for Washington Post

Procurement

“Through Executive Orders, Obama Tests Power as Purchaser-in-Chief” by Gregory Korte for USA Today

Redistricting

Florida: “Judge Rejects House, Senate Redistricting Map, Recommends Challengers’ Plan” by Mary Ellen Klas for Miami Herald

Lobbying

Texas: “Wining and Dining Disclosure Bills Advance” by Jay Root for Texas Tribune

Campaign Finance

“How Super PACs Can Run Campaigns” by New York Times Editorial Board for New York Times

New York: “Bill to Close Campaign Finance Loophole Clears Committee” by Michael Virtanen for Legislative Gazette

Ethics

Colorado: “Denver City Employee Indicted on DIA Contract Bribery Charges” by Mark Jaffe for Denver Post

Georgia: “Ga. Ethics Commission Chooses Ritter as New Leader Following Troubled Period” by The Associated Press for Columbus Republic

Indiana: “Gov. Pence to Sign Ethics Reform Bill” by Tony Cook for Indianapolis Star

New Jersey: “The Dinner Proposal That Led United into Corruption Probe” by David Kocieniewski and David Voreacos for Bloomberg Business

Texas: “Tough Ethics Bills May Hit Too Close to Home for Texas Legislature” by Eva-Marie Ayala for Dallas Morning News

Elections

“G.O.P. Struggling With Shifts on Gay Marriage” by Adam Nagourney for New York Times

Procurement

New York: “With Dean Skelos’s Son Aboard, AbTech Seemed Confident in Bid for Nassau County Contract” by Thomas Kaplan for New York Times

Lobbying

“Bill Shuster Muscled Through Transportation Bill Pushed by Lobbyist Girlfriend” by Anna Palmer, Jake Sherman, and John Bresnahan for Politico

“Taco Bell Lobbyists Thank Congressional Staff with 6,000 Tacos” by Lee Fang for The Intercept

California: “For Statewide Change, Advocates Are Making Their Battles Local” by Melanie Mason for Los Angeles Times

Indiana: “Trinkets, Website Part of Gov. Pence’s Unique Lobbying Effort” by Ryan Cook for Indianapolis Star

New York: “Skelos Probe Sparks Competing Calls for Change in Nassau County” by James Galloway for Island Now

Campaign Finance

Pennsylvania: “Council Moves to Illuminate Super PAC Money” by Tricia Nadolny for Philadelphia Inquirer

Rhode Island: “Raimondo Signs into Law New Campaign Finance Measures” by Jennifer Bogdan for Providence Journal

Ethics

Illinois: “Ex-State Rep. Smith, Who Pocketed $7,000 Bribe, Gets 5 Months in Prison” by Jason Meisner for Chicago Tribune

Elections

Missouri: “Resignations after Election of Black Mayor Put Missouri Hamlet in Spotlight” by John Eligon for New York Times

Procurement

Florida: “Inspector General Questions County Contractor Deals” by Andy Reid for South Florida Sun Sentinel

Lobbying

“What We Get Wrong about Lobbying and Corruption” by Lee Drutman for Washington Post

“Lobbyists Slow to Cash in on Republican-Led Congress” by Megan Wilson for The Hill

Campaign Finance

“Campaign Finance System Is Broken Says GOP Super-Lawyer Jim Bopp” by Michael Beckel for Center for Public Integrity

Kansas: “Ex-Lawmaker Sentenced to 18 Months in Jail for Bank Fraud” by Nicholas Clayton (Associated Press) for Kansas City Star

Ethics

“Storm Gathers around Clinton Finances” by Niall Stanage for The Hill

Illinois: “Judge Says Berrios Doesn’t Have to Pay $10,000 Ethics Fine” by Hal Dardick for Chicago Tribune

Montana: “Montana Senate Committee Tables Confirmation of Political Practices Commissioner” by Charles Johnson for The Missoulian

Texas: “Texas House OKs Change in Investigating Public Corruption” by Eva Ruth Moravec (Associated Press) for Lubbock Avalanche-Journal

Virginia: “Ex-Virginia First Lady McDonnell Tries to Get Corruption Convictions Tossed” by Matt Zapotosky for Washington Post

Procurement

Texas: “House Launches Contracting Inquiry at 11 State Agencies” by Aman Batheja for Texas Tribune

Elizabeth Bartz, president and CEO of State and Federal Communications, will be a featured panelist in a session called “Procurement Lobbying and Legislation that Impacts Procurement” at the 2015 NASPO How to Market to State Governments Meeting.

The conference, which will be held in Philadelphia, PA, runs from March 29-31.

State and Federal Communications is proud to be a Bronze Sponsor of this national forum!

Lobbying

California: “California Lawmakers Took Less Free Travel in 2014” by Jeremy White and Christopher Cadelago for Sacramento Bee

Florida: “In South Florida, the Business of Government Looks More and More Like the Business of Politics” by Patricia Mazzei for Miami Herald

Idaho: “Chastened, IACI Now Looks Inward” by Brian Dentzer for Idaho Statesman

New Jersey: “N.J. lobbyists may soon have to pay more to lobby: The Auditor” by NJ Advance Media for Newark Star-Ledger

Rhode Island: “New Task Force Formed by the Secretary of State Seeks to Overhaul Rhode Island’s Lobbying Laws” by Jennifer McDermott (Associated Press) for Greenfield Daily Reporter

Texas: “Judge Removed in Case against Conservative Activist” by John Reynolds for Texas Tribune

Campaign Finance

“Obama Urged to Impose Rules on Campaign Spending Disclosure” by Megan Wilson for The Hill

New Jersey: “Former Bergen County Sen. Coniglio to Pay $100,000 Settlement to State” by Dustin Racioppi for Bergen Record

Ethics

Indiana: “Ethical Dilemma? House Speaker Brian Bosma Has Ties to Indy Eleven” by Tony Cook and Mark Alesia for Indianapolis Star

Wisconsin: “Audit Prompts Changes at Election Agency, Officials Decry Budget Cuts” by Steven Verburg for Wisconsin State Journal

Procurement

Mississippi: “Senate to Propose Changes to ‘No-Bid’ Contracts Bill” by Jimmie Gates and Emily Le Coz for Jackson Clarion-Ledger