White House Weighed Funding for Ethics Website

October 12th, 2010 by Elise

The Hill reports that the Obama Administration did attempt to fulfill its campaign pledge to house all government ethics related content at a single URL, to be known as Ethics.gov. The campaign promise in question, according to The Hill, was Obama’s website pledge to “create a centralized Internet database of lobbying reports, ethics records and campaign finance filings in a searchable, sortable and downloadable format.”

Public interest groups have been calling for the introduction of the website in order to aggregate data from campaign finance, lobbying and other types of ethics disclosures, currently spread out among the various agencies’ websites. The newspaper reported that the administration had been working on finding funding for the project, but have hit walls in the actual implementation.

The Sunlight Foundation’s John Wonderlich told The Hill that  “There is definitely a big distance from President Obama’s Ethics.gov campaign promise and what they have done so far… They are failing to live up to their promise, but their promise was aimed very high.” This comes after disappointment from some groups earlier this year when Norm Eisen’s post as White House special counsel for ethics was not refilled at the same level; Citizens for Ethics and Responsibility in Washington, among other groups, saw this as a step backwards for ethics efforts.

After the exit of Norm Eisen as the administration’s ethics chief, the focus on ethics seems to have gone mostly to pushing for passage of the DISCLOSE Act, and little else. The White House blog, once Eisen’s favorite format for announcements, now has posts in the “Ethics” category from Dan Pfeiffer and Jesse Lee, both high-level staffers in the White House communications department.

The Hill article is here: “Watchdog group waiting for Obama to fulfill ethics pledge for online hub.”

In California, Public Pension Planners Must Register as Lobbyists

October 12th, 2010 by Elise

In California this week, a law was passed requiring state pension placement agents to register as lobbyists in the state. This is according to Pay to Play Law Blog, which said that the law is “aimed at terminating “bounty-based compensation” and unrestricted gift-giving.”

The legislation was pushed by California Public Employees’ Retirement System (CalPERS), state Controller John Chiang and Treasurer Bill Lockyer. As lobbyists, the California state pension placement agents must comply with California’s Political Reform Act of 1974. A similar law in New York, according to the blog’s authors, is much more restrictive, with an outright ban on placement agents in place.

Agents are banned from contributions to elected board officials, and must file quarterly compensation reports if doing business with CalPERS or the California State Teachers’ Retirement System (CalSTRS).

A goal of the bill was increased transparency. The blog reports that Lockyer said the legislation “embodies a principle that has been forgotten and flouted in California and across the nation: Workers, retirees and taxpayers come before politically-connected middlemen and wealthy Wall Street interests.”

Read the background on the legislation here, and the post from Pay to Play Law Blog here.

Industry Moves and Changes

October 12th, 2010 by Elise

Jerome Murray has been named director of federal policy and government relations at Merck. Murray previously served as legislative director for Rep. G.K. Butterfield (D-NC)

Julie Scott Allen has been hired as government relations director in the health government relations practice of Drinker Biddle & Reath LLP. Allen most recently was vice president and managing director at Thompson Advisory Group

Michael C. Obrock has been hired as a legislative associate with the federal relations office at the National Governors Association. Obrock was previously with the House Transportation and Infrastructure Committee.

James A McGreevy III has been promoted to senior vice president for government affairs at the American Beverage Association.

John Fuller has left Van Scoyoc Associates to work for Capitol Decisions, Inc.

Weekly Lobbying News Round-Up

October 8th, 2010 by Elise

Opponents say Nancy Pelosi’s “swamp-draining” ethics pledge of 2007 seems to be a low priority for theWeekly news embattled speaker.

The State Department has rolled out new per diem rules after a series of lawmakers admitted to keeping excess funds from overseas travel.

More on the mid-term problem for some candidates of having to “overcome” lobbyist ties. (From Open Secrets)

Following up on reports that lobby shops are beefing up their Republican practices in anticipation of a heavily-favored GOP mid-term season, The Hill reports on K St. firms making advances towards Democratic lawmakers in danger of losing their seats.

The House has passed a bill to resolve conflicts between states’ pay to play laws, according to LobbyComply blog. Rep. Mike Quigley (D-Ill.), sponsored the bill; Rep. Quigley is a legislator who is noted for his work toward continuing ethical best practices (his Transparency in Government Act included new disclosure requirements for lobbyists).

Congressional cage match! It’s the Rahalls v. the lobbying firm that used to employ Tanya Rahall (sister of Congressman Nick Rahall (D-W.Va.). The firm (which hasn’t done much lobbying in recent years, according to their Senate LDA filings) claims that Ms. Rahall improperly used client data.

I’m a little foggy on the details of public pensions placement agents, but if that phrase makes any sense to you, you may want to read this report from Pay to Play Law Blog on California’s new lobbyist registration law.

Meredith McGehee of the Campaign Legal Center has an interesting look at the OCE’s recent cases, and what the outcome “should have been.” Worth a read!

The Onion riffs off those press releases you see all the time about such and such organization hiring so and so to advance their lobbying goals. (And their fictional lobbyist “Jack Weldon” works for Patton Boggs.)   “American People Hire High-Powered Lobbyist to Push Interests in Congress.”

Quote of the Week

“[CDFPAC] policy dinners are ‘one of the best things that happen in Washington… [they’re] a little bastion of enlightenment and intellectual discourse… If I’m gonna give money, I’d rather have it go to this than to some inane TV commercial,’” Former Rep. Toby Moffett, a Democratic consultant, Politico, 10/5/2010

Who’s Afraid of American Crossroads?

October 8th, 2010 by Madiha

Like you didn’t see that one coming: a pair of campaign-finance watchdog groups have asked the Internal Revenue Service to investigate Crossroads GPS, a conservative nonprofit that is spending heavily (and when we say “spending heavily,” we mean it), to influence the midterm elections.

Karl Rove

If you watch the news, read Politico, or dig around the FEC site as a pastime (not us… ok maybe a few Friday nights FEC.gov has provided entertainment), you have heard about American Crossroads. Since its creation earlier this year, many in the media have cast shadows of doubt on the activities of the political grassroots organization.

So we decided to whip up a quick, fact-based rundown for those who aren’t clear on what American Crossroads is, think Crossroads GPS might be a global positional system, or are just excited by anything that comes out of the prolific mind of Karl Rove (you know who you are).

FACT 1: American Crossroads is not a cover for an underground mobster. It is actually organized as a 527 committee under the IRS tax code, has a DC office, and even a phone number that you can call on. And, being a 527 group, it’s actually within legal limits to collect unlimited contributions. While it remains to be seen if the FEC or IRS will crack down on it for abusing the law as alleged, on paper at least, it seems to be cautious and regularly filing its required documents within deadlines.

FACT 2: Crossroads GPS is not a space-based global positioning system. It is, however, an offshoot of American Crossroads, formed last June as a 501(c)(4). And because it has a 501 (c)(4) status, it does not have to disclose its donors. However, since a majority of a 501(c)(4) nonprofit’s activities must be apolitical, Crossroads is in the hot seat as yet another nonprofit allegedly operating as a lobbying outfit that doesn’t get to pay taxes.

FACT3: While Karl Rove is one of the founders of American Crossroads, he doesn’t actually run its daily operations. He’s more of an informal advisor, the fundraising brains, guru — you get the drift. A guy named Steven Law is the CEO (for those of you who don’t read your Wash Reps Weekly, Law is a former deputy secretary of labor in the Bush administration and was previously general counsel to the US Chamber of Commerce).

The FEC filings of American Crossroads show that between mid-August and early October, the organization had already filed 21 contribution notices, reporting massive media spending of almost $18 million. Just to give a rough idea of the nature of the contributions, they include media expenses to oppose the campaigns of Democrats Michael Bennett (Colo.) and Jack William Conway (Ky.), and to support Marco Rubio (R-Fla.), among others.

While one can argue against the wisdom of the FEC and IRS laws being too easy to manipulate, it can’t be denied that American Crossroads seems to have done its homework and done it well. If there’s a scandal in here, it’s definitely not flagrant and in-your-face a la Abramoff.

Karaoke in the Capital

October 7th, 2010 by Brittany

Luke Russert clearly takes his karaoke seriously

Last night a few of Washington’s favorites came out to belt- it-out to raise funds for the Mr. Holland’s Opus Foundation at the Karaoke in the Capital. The foundation provides musical instruments for deserving students and schools.

The event, emceed by Bob Schieffer of Face the Nation, was, as always, fairly entertaining with a stand out performance from Luke Russert.

This year the foundation selected Charles Eliot-Lemon G. Hine Middle School in Washington, DC to receive musical instrument funding. They currently have 20 working instruments which are shared amongst 70 students throughout the day. The students are even sharing mouthpieces (they clean them with alcohol in between classes.)

This year’s event was put on by the AAPC at the Rock and Roll Hotel. Lobbyists.info was a sponsor.

New Lobbying Certificate Program Session

October 6th, 2010 by Brittany

Join the American League of Lobbyists for their upcoming Lobbying Certicate Program (LCP) session:

Effective Communications: Congress and the Media
October 18, 2010 from 8:45-11:45 am EDT
Hall of States, Washington, DC

What you’ll learn:
Register for up-to-date training on how leverage more efficient and effective communications in the “New Washington,” including:

  1. How different government officials like to receive their information – and how to take advantage of the newest trends
  2. Today’s best new and traditional media – and when to use them
  3. How to get high ROI from what you spend on media communications
  4. How to support your contacts and give them greater persuasive power
  5. What to say (and not say) to get an appointment with Congressional staff
  6. How to craft a strong presentation and leave-behind materials
  7. What lobbyists must know about communications involving federal contracting -including bid negotiations, collateral policies and dispute resolution
  8. How to make sure your communications comply with all relevant rules – including the new lobbying requirements

Click here to register today!

Tuesday Ethics Tip: Bundling

October 5th, 2010 by Elise

Lobbyist bundling activities must be reported

In the run-up to the mid-terms, government relations professionals might be engaged in a little campaign contribution bundling. This is a perfectly acceptable form of political fundraising, in which one lobbyist gathers campaign contributions from a group of colleagues and presenting the resulting “bundle” to lawmakers.

Regulations and disclosure:

Under HLOGA, candidate committees, leadership PACs and federal party committees are required to disclose to the Federal Election Commission the names of individual lobbyists, registered lobbying entities, or PACs maintained by lobbyists or lobbying entities that donate bundled contributions of $15,000 or more.

The “bundle” can be a physical pile of checks, or a method of assigning credit for certain amounts of money raised.

Registrant PACs and Leadership PACs were required to identify themselves as such on FEC Form 1 no later than March 29, 2009.

As always, members of Congress are prohibited from soliciting campaign contributions in regard to any kind of official action.

Links to information regarding the new rules, related forms and committee filings are here, at the FEC’s site.

Podestas at the Washington Ideas Forum

October 4th, 2010 by Elise

Heather and Tony Podesta talk with Atlantic Media’s Ron Brownstein about lobbying, whether lobbyists really have a “secret edge,” and the current political environment in Washington.

Podestas on Washington Ideas Forum (Video)

Read more at The Atlantic’s site.

Weekly Lobbying News Round-Up

October 1st, 2010 by Elise

GOP members of the House Ethics Committee want Rep. Zoe Lofgren to just schedule trials for Reps. Waters and Rangel already! (Roll Call)

Jack Abramoff was spotted in Dupont Circle on Tuesday, having a discussion with some friends about “writing a book,” according to Roll Call.

Rep. Zack Space (D-Ohio) has been a public proponent of cutting lobbyists’ ability to give campaign contributions, and has also pledged not to accept any lobbyist campaign contributions himself. The GOP is hitting Rep. Space by claiming that his acceptance of “special interest” PAC money and contributions from lobbyists’ family members constitutes the same thing.

State and Federal Communications has a new e-newsletter up – Compliance Now, October 2010.”

Good government groups point out the continued absence of the Ethics.gov website. Article from The Hill.

Advocacy is all about customization, according to Amy Showalter.

Rep. Chellie Pingree (D-Maine) was getting in hot water from several groups for her use of a private jet… but the airplane was cleared for her use by the Ethics Committee, since it is owned by her fiance.

Quote of the Week:

“There is definitely a big distance from President Obama’s Ethics.gov campaign promise and what they have done so far… They are failing to live up to their promise, but their promise was aimed very high.” – John Wonderlich, policy director for the Sunlight Foundation, The Hill, 10/1/10

Magliocchetti Enters Guilty Plea

October 1st, 2010 by Elise

The Justice Department announced last Friday that ex-lobbyist Paul Magliocchetti had pleaded guilty to making illegal campaign contributions and making false statements in a federal district court in Alexandria, VA.

Magliocchetti, the founder of defense appropriations lobbying shop the PMA Group, had previously entered a not-guilty plea. Prosecutors said Magliocchetti had admitted to funneling funds through family members and his firm’s lobbyists to Members of Congress with whom he was doing business. Magliocchetti admitted to knowledge of the campaign finance limits – both personal, and corporate. There was no mention of the lawmakers to whom Mr. Magliocchetti had been funneling donations.

Mark Magliocchetti, son of Paul, had previously pleaded guilty to an separate charge of making illegal campaign contributions. Mark Magliocchetti had worked at PMA Group.

Paul Magliocchetti is scheduled to be sentenced in December. The three charges to which he has pleaded guilty carry up to a five year sentence. Magliocchetti had previously been indicted on 11 charges; the eight charges to which he did not plead guilty will be dropped as part of his plea bargain.

Read more about the case at the Blog of Legal Times, the New York Times, Politico, and from the Justice Department.

What’s in a Name?

September 30th, 2010 by Autumn

Everyone knows that one of the keys to being a successful lobbyist is name recognition.  While this requires a lot of hard work and networking for most, some lobbyists have it a bit easier.  After having  reviewed the names of thousands upon thousands of government relations professionals, here is a small sampling of some of the names that caught my eye immediately.

The other Harry Henderson.

Harry Henderson Jr. is no monster/hit-and-run victim from the Pacific Northwest.  As President of Anchor Consulting he lobbies for the Boys & Girls Club of Santa Clarita Valley.

I hold this Dave Thomas responsible for my teenage obesity.

What do you do if you share your name with the founder of fast food chain Wendy’s?  David Thomas, Principal at Mehlman Vogel Castagnetti Inc. did his part by representing the American College of Cardiologists.  These days, Thomas has found himself another obvious client, the National Restaurant Association.

Be sure to consult The Lobbying Compliance Handbook before buying that round of martinis.

Brian Griffin is one of the top dogs at The Duberstein Group.  His scholastic cartoon counterpart would be pleased to know that Brian lobbies for the National Math & Science Initiative.

Deciding on which Kate Moss picture to include was the high point of my day today.

Having the same name as a supermodel wasn’t enough for Kate Moss, the president of the aptly named Kate Moss Company.

This picture might get my mom to start reading Lobby Blog.

It’s not unusual that Tom Jones, president of Federal Business Navigators, recently accompanied a client to a business meeting with the Department of Defense.

Cue loud screaming.

A lot of children can say “I feel good” due to the hard work of Christine James-Brown, the president and CEO of the Child Welfare League of America.

The only thing better than sharing a name with one tv character is sharing a name with two.

You can see Olivia Benson and Elliot Stabler, the alter egos of the Episcopal Church’s GR professional David Benson-Staebler, Wednesday nights at 9 on NBC.

Compliance Q and A: Recovery Act Lobbying

September 29th, 2010 by Elise

ARRA Road Sign

Q: A few government agencies are still handing out stimulus money… and we may see another stimulus package passed. Are there currently any special restrictions on lobbyists regarding stimulus funds?

A: The Office of Management and Budget (OMB) released final guidance regarding the restrictions on communications with the executive branch related to American Recovery and Reinvestment Act (ARRA), also known as stimulus funds, on July 24, 2009.

The guidance allows lobbyists to speak with agency officials, but does restrict oral communications for registered lobbyists and non-lobbyists starting at the point when an application for funding has been submitted and ending at the point where the funding has been awarded.

Exceptions apply when the communication occurs at a widely attended gathering or the inquiry is of a logistical nature, as detailed in the guidance. Communications with lobbyists are still required to be disclosed by the agency official. Previously, the Obama administration and OMB stated that registered lobbyists were only able to submit written communications regarding specific ARRA projects.

Have a question for Compliance Q&A? Email your question to ehill@columbiabooks.com.

New Audioconference on Congressional Investigations and Testimony

September 28th, 2010 by Brittany

Congressional Investigations and Testimony:
Practical Strategies for Proactive Prevention, Damage Control and Success

October 14, 2010 2:00-3:30 pm EST

Congress wants answers. Financial services providers, “Big Oil,” and the insurance industry are already in the cross-hairs. With ethics, the budget and the stimulus creating a high-pressure, high-visibility environment, the possibility for many more individuals and organizations to face Congressional questioning is increasing daily.

What if you’re called upon to provide testimony or to advise a client who has to go before Congress?  What if you’re asked to present documents?  Will you be prepared to deal with PR issues – and prevent possible leaks?  Will you know how to negotiate terms of a hearing? Act now to arm yourself with a practical strategy for handling – and ideally avoiding -  congressional investigations.

Register now for Congressional Investigations and Testimony: Practical Strategies for Proactive Prevention, Damage Control and Success.

The 90 minutes you invest in this audioconference could literally make the difference between promoting your agenda successfully and losing everything. Top GR attorneys map out steps to take now that will empower you to prepare executives to testify successfully and avoid becoming the focus of a congressional investigation.

Click here to register.

Recession brings in the bacon for K Street

September 27th, 2010 by Elise

A down-economy has been a boon for lobbying firms, according to an article by the Washington Post. The article focuses on cash flow in both law firms and lobbying firms in DC, over the past two years.

Massive layoffs in law firms in 2009 and slower flow of business since the start of the recession in 2008 have been detrimental to the organizational health of most law firms in the DC area. But a focus on regulatory law and advice has led to success for some firms.

Certain firms are building strategic practice groups of lawyers with regulatory focus in some of the past year’s biggest legislative issues – environmental policy, healthcare law, and financial regulatory policy.

Lobbying firms are stronger this year than ever before. Almost all of the top ten lobbying firms (by revenue), reported revenue increases over the past several quarters. According to the Post, only three of the largest law firms in the area have increased their attorney count, and two of them, Covington & Burling, and Patton Boggs, also have a very strong government relations / lobbying side to their business.

The Post notes this “synergy” and quotes Bruce Heiman of K&L Gates, saying that the double-sided nature of law plus lobbying may bring greater success, saying that even placement of a comma in a legal document might be the difference between success and failure in a client’s bill: “You just have to [see] that once or twice to pay very close attention to what is it that you’re lobbying for and thinking about how a judge will ultimately interpret the language … I think that gives you a perspective on things that some folks don’t have.”

Washington Post article is here: “Law firms have struggled, but recession proved to be bullish for lobbying shops.”