HomeEssential Ethics / June 12, 2020

Essential Ethics

June 12, 2020

Latest Developments:

  • James E. Trainor III was formally sworn in as a member of the Federal Election Commission, according to an announcement by the Commission.  The Commission now has a quorum.  The Commission’s first public meeting is scheduled for June 18, 2020.
  • The Washington State Attorney General publicized a stipulated judgment against the Freedom Foundation in which the foundation agreed to pay $80,000 as a result of its failure to report in-kind contributions of assistance with proposed local ballot measures related to collective bargaining.
  • COVID-19 Update:  Government officials, agencies, and courts continue to respond to the COVID-19 emergency.  Each week we will add the latest information.  For more information about filing deadlines, contact our Political Reporting Unit.  Among the more notable developments this week:
    • California Contracts:  CalMatters discusses its review of some $3 billion worth of no-bid contracts that California handed out during the COVID-19 crisis under some very questionable circumstances.  The article points out that, “in a few instances, readily available public records and some Googling should have raised potential red flags.”
    • Hawaii Contracts:  The Honolulu Civil Beat reports that a company owned by a major donor, who has “given more than $118,000 to about 40 campaigns since 2014,” was awarded a $1.4 million emergency, no-bid contract to clean municipal buses during the pandemic.  According to the article, “the company was hired before a contract was even sent to them.”  The owner counters, “‘We always abide by fair practices and provisions and with accountability’… I operate knowing there will be an audit, I just assume that.’”

Reminder:

 Washington State Senate Bill 6152 took effect June 11 along with the Washington Public Disclosure Commission’s emergency regulations.  The bill concerns “foreign involvement and financing in campaign activities.”  The regulations define “prohibited financing by foreign nationals” and “prohibited decision-making involvement by foreign nationals.” The regulations also set forth the information donors must provide to certify their contributions are not derived from foreign funds or involve foreign nationals.  Political committees are required to obtain this certification from donors and must return contributions that are not certified. We recommend that a certification be included with any contribution made in Washington State.

In Case You Missed It:

  • JCOPE Leadership in Limbo:  According to the Albany Times-Unionthe search for a new executive director for the New York Joint Committee on Public Ethics has effectively stopped.  The last executive director left a year ago.   A search committee received over 100 applications, but after sorting those applications and finding “about nine contenders who were to be interviewed, the committee’s effort to hire a replacement suddenly ended.”  The leading candidate is the current General Counsel of JCOPE, but “there are not enough votes in favor of appointing [the current General Counsel], who is regarded as a highly qualified attorney, to the executive director position.”
  • Streaming Disclosure:  CNN reports on the surging market for political advertising on streaming services such as Hulu.  “But the migration by candidates, super PACs and political parties to streaming services has set off alarms for some campaign-finance watchdogs because the advertising isn’t subject to the same disclosure requirements that have governed traditional media for decades.” One observer opined that the “rules governing our campaigns have not kept pace with our changing modes of communication and changing life.”
  • Gift Hearing: According to Colorado Public Radio, the Colorado Independent Ethics Commission found that the former Governor violated the state’s gift ban twice, including accepting free travel to the commissioning of the U.S.S. Colorado.  The Commission dismissed complaints about four other trips.
  • SF Corruption Probe Widens:  The San Francisco Chronicle reports that three more officials, including the Mayor’s Director of the Office of Neighborhood Services and a pair of potential contractors, have been charged in a federal investigation of city hall corruption.  The Director of Public Works and a city restauranteur were charged in January with honest services fraud for conspiring to fix contracts.  The federal prosecutor alluded to more coconspirators who may be charged.