HomeEssential Ethics / May 7, 2021

Essential Ethics

May 7, 2021

Latest Developments:

  • The Supreme Court of Montana issued a decision in COPP v. Montana Republican Party. In response to a complaint by the Montana Democratic Party, the Commissioner of Political Practices had sought campaign finance documents from the Republicans. The Republicans refused to provide anything other than their previously filed campaign documents. The court held the statute does not authorize the Commissioner to subpoena documents.
  • The Montana Legislature approved SB 319, which authorizes the use of joint fundraising committees, regulates public college student political activity, and disqualifies a judge if the judge has accepted more than half the maximum campaign contribution from a lawyer in the case. The measure goes to the Governor and would take effect July 1 if approved.
  • The California Fair Political Practices Commission published its monthly collection of new formal and informal advisory opinions, subject to the Commission’s approval at its next meeting. One opinion, A-21-032, is of interest to firms that manage public funds for state and local agencies in California. The advisory opinion confirms that certain outside consultants who manage public investment funds are classified as public officials who must disclose their personal financial assets in public filings.

In Case You Missed It:

  • Behested Payments Obscured: The Los Angeles Times reports that a million dollar charitable donation made at the behest of the Governor of California was dutifully reported to the Fair Political Practices Commission, yet no one knows the source of the donation. The contribution came from a “donor-advised fund,” which provides anonymity to the actual donor. The fund gave the money through the Silicon Valley Community Foundation. The same article notes that the Kaiser Foundation and Facebook were top contributors at the Governor’s request, providing $34 million and $27 million in donations, respectively, during 2020.
  • Feds Focus on Indirect Bribes in LA: According to the Los Angeles Times, the federal investigation into corruption in Los Angeles City Hall has turned its focus to “indirect bribes.” Prosecutors allege that “a deputy mayor-turned-real estate consultant worked to arrange ‘indirect bribes’ for city officials by routing the money through those officials’ family members.”
  • Illinois’ “Very Vibrant Culture of Corruption” Debated: The Chicago Tribune reports that “Two years into a federal corruption investigation …, legislators are scrambling to strengthen Illinois’ government ethics laws.” The article is skeptical that the effort will be successful. “The bipartisan push to pass an ethics overhaul… fits a pattern that has played out over and over again in Springfield: a scandal arises and lawmakers promise to address the problems that are exposed, then in most cases stop short of the most robust recommendations for rooting out wrongdoing.”
  • Guilty Plea for Bribe: The Detroit News reports that a Detroit Councilmember pleaded guilty in state court to accepting “$15,000 in cash and free car repairs from a Detroit businessman in exchange for his vote on a controversial land deal.” He “was indicted by a federal grand jury in October 2018 on bribery conspiracy and two counts of bribery stemming from the allegations.” The federal charges will be dismissed following the plea in state court.