HomeEssential Ethics / February 28, 2020

Essential Ethics

February 28, 2020

Latest Developments:

  • The New York Joint Commission on Public Ethics met this week and, among other things, unveiled proposed amendments to its Comprehensive Lobby Regulation.  As we previously reported, the major changes center on grassroots lobbying, including social media lobbying, and changes to definitions, including the definitions of “designated lobbyist” and “individual lobbyist.”  The Chair indicated that the Commission will vote next month on whether to move the draft forward to a rule-making process.
  • The California Fair Political Practices Commission commenced an investigation into unreported payments made to a nonprofit allegedly at the behest of a state legislator.  The Commission’s action was in response to the third installment of Cal Matters’ “Sweet Charity” investigative reports.  (See, “Tech Talk,” below.)  The latest report describes a tech conference funded by unknown tech interests whose identities and financial contributions to the conference are largely undisclosed.
  • The Chicago City Council approved an ordinance banning city officials and employees who have authority over city business or contracts from working or deriving income from any city contractor or party to any city contract, work, or business.
  • The Chicago Board of Ethics issued another opinion in its series on activity by nonprofits.  The Board reviewed several specific situations and provided its opinion as to when certain activities by individuals acting on behalf of a nonprofit organization constitute lobbying that requires registration.  The board also indicated that it will be releasing “draft Rules and Regulations covering lobbyist registration for individuals paid by nonprofit organizations.”

Reminder:

2020 Legislation:  Nielsen Merksamer has an active California lobbying practice based in Sacramento for those interested in monitoring or influencing California legislation.  In addition, Nielsen Merksamer tracks lobby and campaign bills around the country.  Forty-three state legislatures are now in session, with two more states scheduled to commence legislative sessions this spring.  Nielsen Merksamer is tracking more than 600 campaign finance and lobbyist-related bills in current legislative sessions nationwide.  We track bills from the time they are introduced until final disposition in the session.  When a bill becomes law, Nielsen Merksamer updates its summary for campaign or lobby law for that state; summaries are available to subscribers.

In Case You Missed It:

  • Scam PAC Sentence:  Scott B. MacKenzie, who pleaded guilty in October to operating PACs that raised money but spent it all on “fundraising, salaries and overhead,” was sentenced to a year in federal prison for making false statements to the Federal Election Commission.  The Center for Public Integrity explains that the charges stem from false reports for “two PACs: Conservative StrikeForce and Conservative Majority Fund.”  The article points out that the number of “PACs that raise small-dollar donations – and spend mostly on themselves – are proliferating.”
  • Tech Talk:  Cal Matters describes how a couple of California legislators formed the “Tech Caucus” and solicited donations from internet, tech, and other business interests.  Formally known as the Foundation for California’s Technology and Innovation Economy, the group recently sent conference invitations to tech companies with specific offers: “For $50,000, contributors could moderate and pick a panel topic…  A $25,000 donation allowed them to place someone on a panel.  And $10,000… would buy attendance at the two-day event, including dinner with lawmakers.” The caucus and conference organizers believe the contributions need not be disclosed.  A former President of the Los Angeles Ethics Commission opined that “It doesn’t look like a real symposium, … It just looks like a place for donors to buy facetime.”
  • Three Years for a Book Deal:  CNN reports that “the former Baltimore mayor whose tenure was cut short by a children’s book deal scandal, was sentenced Thursday to three years in prison.” She was also ordered to make restitution, forfeit certain property, and subsequently serve three years of probation “for corruption charges stemming from her role in the scheme.”According to the report, “prosecutors said that in some cases, the books were never delivered, while in others, the pair delivered the books and then converted them to their own use without the buyers’ knowledge, or double-sold books, profiting from the purchases.”