HomeEssential Ethics / June 26, 2020

Essential Ethics

June 26, 2020

Latest Developments:

  • The Federal Election Commission is losing its quorum, again.  Commissioner Caroline Hunter tendered her resignation to the President, effective July 3, 2020.  Politico reports that she will join the legal team of a nonprofit that works on criminal justice reform.  The Commission has a 300-case enforcement backlog and only regained its quorum last month after a 9-month hiatus.
  • The Federal Bureau of Investigation issued a release announcing that Jack Abramoff  has been charged in an information that alleges, among other things, that “he knowingly and corruptly failed to register as a lobbyist, as required by the Lobbying Disclosure Act, after being retained for lobbying efforts that would involve one or more lobbying communications with a federal official.  This is the first ever known prosecution of a lobbyist for a criminal violation of the Lobbying Disclosure Act.”
  • The New York Joint Commission on Public Ethics met and voted to send revisions to the Comprehensive Lobby Regulations and the Source of Funding (for lobbyists) to the formal rulemaking process.  The regulations will be formally published, and a 60-day public comment period will commence.
  • The Hawaii State Ethics Commission adopted amended administrative rules relating to lobbying and gifts.  The regulations are designed to eliminate double reporting by lobbyists and lobbyist employers, clarify grassroots lobbying, clarify the valuation of gifts, and provide exceptions for permissible gifts.  The rules must be approved by the Attorney General and the Governor before taking effect.
  • 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:
    • The New Mexico Supreme Court denied a writ, in Pritle v. Legislative Council (video link, decision at end), to overturn a decision of the legislative Council to bar lobbyists and the general public from sessions of the New Mexico State Legislature, for the duration of the pandemic.  A written court decision will follow.  According the Albuquerque Journal, members of the media will be granted access to the capitol building.
    • The California Fair Political Practices Commission announced that it will resume operating its telephone advice line on July 1, 2020.
  • The Federal Bureau of Investigation announced that it has “arrested Jose Huizar, an elected member of the Los Angeles City Council, on a federal racketeering charge that alleges he led a criminal enterprise that used his powerful position at City Hall to solicit and accept lucrative bribes and other financial benefits to enrich himself and his close associates in exchange for Huizar taking official actions favorable to the developers and others who financed and facilitated the bribes.”  The FBI’s press release alleges that the council member took at least $1.5 million in benefits in a “‘pay-to-play’ scheme.”

In Case You Missed It:

  • $200,000+ Contribution Doesn’t Disqualify: According to an article by Colorado Politics, an attorney contributed over $200,000 to oppose a judge in a retention election.  The attorney’s firm later tried to disqualify the judge from hearing a personal injury case involving the firm’s client.  The Colorado Court of Appeals, in Bocian v. Owners Ins. Co., found that “judicial disqualification is not warranted based on an attorney’s campaign contribution against the judge’s retention where insufficient facts are alleged to place the contribution in context, the contribution occurred months into the litigation, and judicial disqualification would encourage judge-shopping.”
  • Conventions Losing Luster:  Roll Call reports that corporations and trade associations may skip the national party conventions this year.”‘With dates moving and locations changing, that makes it hard to plan,’ said” one lobbyist.  “The virus isn’t the only thing weighing on corporate lobbying interests either.  Even before COVID-19 upended Americans’ lives, many corporations – worried about associating their brands overtly in politics – had been assessing whether the large investments would be worth it.”  A trade association lobbyist summed it up this way, “we realize the situation is fluid, and we are monitoring events and looking for new ways to participate.”
  • Trade Associations Lobby for Inclusion:  According to The Hill, trade associations are actively lobbying for the ability to qualify for small business loans. The associations continue to call “for changes to the Paycheck Protection Program (PPP) so 501(c)(6) organizations can receive loans.” The associations are concerned that “there may have been a misconception that 501(c)(6) organizations are primarily lobbying groups.”
  • Missouri Candidates Move to PACsThe Missourian reports that elected officials, whose campaigns are subject to contribution limits, have turned to the use of PACs.  PACs “have no limits on the amount they can receive in donations.”  According to the article, “candidates tell their wealthy donors to give to a particular PAC…  The PAC, which can accept unlimited donations, then spends the money to support the candidate who raised it.”