The Idaho Statesman (Boise)
May 8, 2014 Thursday
Otter's use of lobbyists irks Fulcher
State Sen. Russ Fulcher says Gov. Butch Otter's reliance on lobbyists for his re-election
campaign calls into question which people he'd represent in a third term - ordinary Idahoans or
those "with cash and connections."
In a news release Wednesday, Fulcher noted the lobbyists on Otter's staff. The release, sent by
Fulcher campaign manager China Gum, didn't mention that Gum is a former lobbyist who
operates a political consulting firm, Inside Baseball Public Affairs..
The four with lobbying backgrounds on Otter's team are:
• Campaign manager Jayson Ronk, who took a leave of absence as vice president of the Idaho
Association of Commerce and Industry.
• Finance director Martin Bilbao, a lobbyist last registered in 2010 who became account services
manager for the troubled school broadband provider, Education Networks of America.
• Lincoln Smyser, whose 2014 clients included the scandal-plagued outgoing operator of Idaho's
private prison, Corrections Corporation of America.
• Elli Brown, whose 2014 clients at Veritas Advisors included the Northwest Food Processors
Association.
"The governor now has staffers from the state's largest lobbying firms working on his re-election
campaign," Fulcher said. "These relationships give people reason to suspect their government of
wrongdoing, even when nothing illicit is taking place. It makes people wonder whether the
governor's re-election is about advancing and empowering Idahoans, or advancing and
empowering people with cash and connections."
In a reply to the Statesman, Gum acknowledged registering as a lobbyist in 2004-2005 and 2013.
Fulcher said the question is whether Otter's campaign staffers will influence state contracts and
legislation.
"Is it legal? Probably. Does it look really, really bad? I sure think so," Fulcher said.
Ronk did not reply to a request for comment.
Gum registered as a lobbyist for the nonprofit Idaho Freedom Foundation in August and
September 2013. In 2004 and 2005 she lobbied for the Idaho State Independent Auto Dealers
Association; at the time her name was China Veldhouse.
Of the IFF work, Gum said, "I led a team of researchers looking into Idaho's statehood and
ultimately resulted in a white paper on Idaho's enabling act. My focus was on research and
education, not lobbying."
Of the work for the car dealers, she said, "I worked to keep the dealers informed of tax and
regulatory changes that affect them. I have never lobbied for a government contract or a
company involved in any taxpayer scandals.
"When I finish this job, I will go back to being a mom," Gum said. "When the Otter staff finishes
the governor's race, they will firmly attach themselves to the government's teat."
Southwest Times Record (Fort Smith, Arkansas)
May 8, 2014 Thursday
State Senator Accepts Lobbying Job With UA System
LITTLE ROCK - State Sen. Johnny Key, R-Mountain Home, has accepted a lobbying job with
the University of Arkansas System.
The UA System announced Wednesday that Key will serve as associate vice president for
university relations, in which capacity he will help coordinate government relations for the
system. His start date has not been determined, but it will be after his current Senate term ends,
the university system said.
Arkansas law does not allow a former legislator to register as a lobbyist until at least one year
after leaving office, but the university system said state law will allow Key to lobby without
registration as a UA System employee.
Key previously applied for a lobbying job with the University of Arkansas in Fayetteville.
"I'm grateful for the opportunity to serve the University of Arkansas System and all of its
campuses and units in this capacity," Key stated in a news release. "I have always had a passion
for improving our state's educational system to benefit all Arkansans and I'm honored to have an
opportunity to use that passion to advance higher education."
Key has served in the state Senate since 2009.
The Bond Buyer
May 7, 2014 Wednesday
Rhode Island Secretary of State to Probe 38 Studios Lobbying
Rhode Island Secretary of State Ralph Mollis has begun investigating possible violations of state
lobbying rules involving former Boston Red Sox pitcher Curt Schilling's failed video-game
company, 38 Studios LLC.
Raina Smith, Mollis' director of communications, confirmed the probe on May 6 after a report by
television station WPRI said nobody from 38 Studios ever registered to lobby state lawmakers or
the governor's office while doing business in Rhode Island from 2010 to 2012. The station cited
a "consulting services agreement," valued at $300,000 and dated January 2011 between
Providence, R.I., attorney Michael Corso and the game company.
According to WPRI, that agreement called for Corso to interact "with government agencies and
various public officials."
Mollis told WPRI he may call for State House hearings.
38 Studios received a $75 million loan guarantee in 2010 from the Rhode Island Economic
Development Corp., backed by the state's moral obligation, as an enticement to move to
downtown Providence from Maynard, Mass. The company in 2012 filed for liquidation under
Chapter 7 of the Bankruptcy Code, leaving Rhode Island on the hook for $75 million in bond
principal, plus $38 million of interest.
The controversy generated a buzz in the capital markets and triggered national debate over state
funding for companies in high-risk sectors.
Debate over whether to pay the debt may resume at the state capitol this month.
Gov. Lincoln Chafee's proposed budget for fiscal 2015 includes a $12.5 million payment for 38
Studios debt. Last year, after lawmakers made noise about possibly making that year's payment
on the debt, Moody's Investors Service threatened to downgrade Rhode Island, saying a moral
obligation was tantamount to a general obligation.
Post & Courier (Charleston, SC)
May 7, 2014 Wednesday
Criticism swift as ethics reform proposal advances; House plan creates S.C. panel with
more power to investigate allegations
COLUMBIA A S.C. House committee approved an ethics reform proposal Tuesday that creates
a new panel to investigate all three branches of government and gives that new board more
power to do so.
The bill, which was passed unanimously by the House Judiciary Committee, was immediately
decried by critics as well as Gov. Nikki Haley as the opposite of the kind of ethics reform that
many have sought. As the debate moves to the House floor, the discussion around ethics has
grown increasingly political as House Speaker Bobby Harrell, R-Charleston, has faced ethicsrelated allegations around whether he used his campaign funds for personal use. Harrell has
called those charges politically motivated. Critics say that his case is an example of why an
independent body to investigate members of the House and Senate is needed.
The Senate rejected calls for an independent panel and moved a bill that requires lawmakers to
disclose, for the first time, their sources of income, among other changes. The House has
embraced income disclosure but veered markedly away on other reforms.
The proposal creates a new panel that would consist of 12 members selected by all three
branches of government and has the power to investigate allegations of ethics violations by
officials and candidates from all three branches. It would have subpoena power and could also
ask state police or government accountants for help in investigations.
Haley rejected the proposal. She told legislators at a Republican Caucus lunch that she would
criticize them if they continued with the bill, according to Rep. Greg Delleney, R-Chester. Haley
s spokesman has previously called the 12-member committee a poison pill since it hasn t been
embraced by her or the Senate.
Instead of true reform, today s amendment does nothing to fix the actual problem legislators
investigating legislators, said Doug Mayer, the governor s spokesman. The governor hopes the
full House will listen to the citizens of our state and do what is right: create a truly independent
agency that exists to serve the public interest, not the interests of legislators.
Mayer also disagreed with Delleney s characterization of the meeting, calling it nonsense.
The governor went to tell the Caucus where she stood on the issue and why she believes the
actions they took today are wrong, he said.
The independent commission s publicized findings would not be binding. Power to punish
violators would remain with existing House and Senate ethics committees and judiciary and
executive review boards. The commission would be composed of four legislators two
Republicans and two Democrats elected by the Senate and House; four active judges chosen by
the Supreme Court and four nonlawmakers appointed by the governor.
The House bill also appears to broaden legislators ability to use campaign funds for uses related
to their office, which has been subject to abuse in the past. It adds language that would allow
elected officials to use the dollars to pay for family members expenses while on official business.
The bill also gives lawmakers 30 days to cure some unintentional mistakes made on campaign
finance reports.
The House panel s move was immediately dismissed by critics. Ashley Landess, president of the
libertarian-leaning think tank South Carolina Policy Council, said legislators had gotten far from
the mark of what advocates wanted from ethics reform. She called the new 30-day window to fix
campaign finance reports a get out of jail free card.
Advocates want the legislature to stop using campaign funds for official business or office use
not expand the reasons for doing so. She said broadening the use of campaign funds to include
family members expenses is indicative of where the reform effort has gone.
You have special-interest campaign donors funding official state business, which they then hide
from the public because they argue it wasn t taxpayer funded, Landess said. The government isn
t supposed to be funded by special interests and neither is official business.
Rep. Delleney, chairman of the House Judiciary Committee, said that South Carolina s
Constitution calls for the House and Senate to investigate their own. Legislators have now
brought in outside voices and assured that investigations are done properly for all three branches
of government. We have taken the foxes out of all the chicken houses in this bill, Delleney said.
This is an independent investigatory commission.
The Times-Union (Albany, NY)
May 7, 2014 Wednesday
Final Edition EDITION
TKACZYK BILL WOULD CLOSE DISCLOSURE LOOPHOLE
State Sen. Cecilia Tkaczyk has introduced a bill that she says would close a disclosure loophole
allowing outgoing state lawmakers to shield potential conflicts of interest.
The measure, part of a package of nine ethics reforms offered Tuesday by Senate Democrats,
would require lawmakers who are out of office by the annual May 15 deadline to disclose their
outside financial interests to state ethics watchdogs.
Those disclosures are retroactive for the previous year, meaning that lawmakers who don't run
for re-election or are defeated at the polls will be out of office by the deadline to file for their last
year in the Capitol.
The Legislative Ethics Commission has said it interprets that to mean they are no longer
obligated to file -- a loophole that came to light, Tkaczyk's office acknowledges, when one of her
supporters lodged a complaint against her opponent in this year's election.
In March, Schenectady Democratic Chairman Brian Quail filed a complaint against former
Assemblyman George Amedore with the Joint Commission on Public Ethics alleging Amedore
should have filed a disclosure last year because he briefly claimed to have won a disputed 2012
Senate race with Tkaczyk, a Duanesburg Democrat.
Quail's complaint led to the revelation that the Rotterdam Republican was never formally seated
in the Senate before court-ordered ballot counting handed the race to Tkaczyk in early 2013. It
also prompted the Legislative Ethics Commission to clarify its interpretation that neither
Amedore, who served in the Assembly until 2012, nor any other employee covered by the
disclosure law, is obligated to file if they no longer hold a covered post on the filing deadline.
Tkaczyk's bill would change that, forcing any statewide elected official, lawmaker, candidate,
legislative staffer or party leader to file a disclosure if they were in that post "for any portion of
the calendar year."
"You should disclose your outside income for every day that you're in office," Tkaczyk said
Tuesday.
Senate GOP spokesman Scott Reif said in an email, "Here we go again -- rather than working to
create new opportunities for the hardworking taxpayers and families who reside here, Sen.
Tkaczyk is playing politics in Albany. When it comes right down to it, you can't trust Tkaczyk."
In his own statement, Amedore called Tkaczyk's bill "political posturing."
The proposed legislation is part of an effort by the Senate Democrats and good-government
advocates to prod the chamber's ruling coalition of Republicans and breakaway Democrats to
take up a raft of ethics reforms left out of March's budget agreement.
That reform package includes a full public-private campaign finance system sponsored by
Democratic Conference Leader Andrea Stewart-Cousins and a bill sponsored by state Sen. Neil
Breslin, a Bethlehem Democrat, that would trigger a constitutional amendment to strip public
officials of their public pension if convicted of a felony breach of the public trust. Also included
are bills that would lower individual campaign contribution limits, close a loophole that allows
donors to use limited liability companies to evade spending caps and ban the use of campaign
money to pay lawyers to battle corruption charges.
Arkansas Democrat-Gazette (Little Rock)
May 6, 2014 Tuesday
Aide to Pryor set to become UA lobbyist; Gearhart cites Massanelli's government
experience
Randy Massanelli, state director for Democratic U.S. Sen. Mark Pryor, will be the University of
Arkansas at Fayetteville's vice chancellor for governmental relations, the Chancellor G. David
Gearhart said Monday.
Starting July 1, Massanelli will be paid a salary of $175,000 a year and assume the lobbying job
held by Richard Hudson, who is paid $202,000 a year and is retiring effective July 31, UA
Fayetteville officials said.
Gearhart selected Massanelli over Senate Education Committee Chairman Johnny Key, RMountain Home, who decided not to run for re-election this year after applying for the job; and
Mac Campbell, a former deputy staff director for the U.S. Senate Finance Committee who was
an aide to former Democratic U.S. Sen. Blanche Lincoln and ran unsuccessfully for state
treasurer in 2006.
Thirty-three people applied for the job; five of them interviewed with the search committee, and
three were selected as finalists.
The vice chancellor for government relations works with state and federal lawmakers and civic
organizations and coordinates the university's activities with local, state and national
government.
Gearhart said in a news release that Massanelli has a strong track record of accomplishment
working with all levels of government and both major political parties.
Massanelli's experience with Arkansas politics "will help us not only continue but deepen our
relationships with our state lawmakers," Gearhart said.
Gearhart said he wanted to find someone who could foster good relationships with elected
officials and build support for the university's priorities.
All three finalists had incredible credentials and were qualified, Gearhart said.
"It was a close race, and at the end of the day, Randy edged out the others with his federal
government experience," Gearhart said. "Richard's are big shoes to fill, and I'm confident Randy
will ensure a smooth transition." State Sen. Jonathan Dismang of Searcy, who is the Republican
whip and is in line to lead the Senate in 2015-16, said he hoped UA would hire someone with
good relationships with state lawmakers.
"I felt like Johnny was a good fit because of his relationships," Dismang said. "I am a bit curious
on the direction they decided to go." Gearhart and some UA officials had drawn criticism from
state lawmakers over a Division of Legislative Audit report into a multimillion-dollar deficit in
the university's Advancement Division.
Asked to explain why the university hired Massanelli over Key, Laura Jacobs - associate vice
chancellor for university relations - replied in an email that the search committee advanced three
outstanding candidates and "at the end of the day, Mr. Massanelli's federal government
experience won the chancellor's confidence that he'd be able to foster good relations with our
elected officials at all levels." Massanelli has been state director for Pryor's U.S. Senate office
since 2003. He served as Pryor's campaign manager in 2001-02 and was director of operations
for the Arkansas attorney general's office when Pryor held the post. Pryor's father, former U.S.
Sen. and Gov. David Pryor, serves on the UA board of trustees.
Key could not be reached for comment by telephone Monday afternoon.
He has served in the state Senate since 2009 and in the state House of Representatives from
2003-2009.
Key sold his family's preschool business last year, and he said he hadn't been assured that he
would get the Fayetteville job when he decided not to seek re-election in February. At that time,
UA Trustee John Goodson of Texarkana paid a visit to the state Senate and said he wasn't
leading a campaign to get Key hired at UA.
In late February, Key said he wasn't gambling that he'd get the job.
"There is life beyond the General Assembly," he said, adding that he and his wife are ready to
embark on it.
If he was hired at UA, Key had said he wouldn't spend more than $400 on lobbying in a quarter,
so he wouldn't be required under state law to register as a lobbyist and, thus, he wouldn't run the
risk of violating Act 48 of 2011 that requires a one-year cooling-off period between the end of a
lawmaker's term and his registration as a lobbyist.
Massanelli won't be subject to federal lobbying restrictions while he works for UA because he'll
be working on behalf of an institution of higher education, said Steve Voorhies, manager of
media relations for the university.
Campbell, the third finalist, said Monday in an email that "Randy is a hard worker and a great
guy. I know he will do a fine job for the U of A."
Pittsburgh Tribune Review
May 6, 2014 Tuesday
Ethics issues focus in race
They pepper their platforms with terms would-be reformers use: Accountability. Integrity.
Transparency.
The four Democrats in the gubernatorial primary--York businessman Tom Wolf, U.S. Rep.
Allyson Schwartz, state Treasurer Rob McCord and former Secretary of Environmental
Protection Katie McGinty--point to examples of how they would clean up Harrisburg.
Barry Kauffman, executive director of nonpartisan government reform group Common Cause
Pennsylvania, said it would be "refreshing" to see a governor make ethics reform a priority. The
state, he said, has an "incestuous" relationship between money and politics.
"How long can you go when there's an indictment and conviction and public officials going to
jail several times a year?" he said.
As the May 20 primary nears, half of Pennsylvania voters report little to no trust in state
government, a body whose members have landed behind bars for public corruption. Gallup in
April found 3 percent of Pennsylvanians had a "great deal" of trust in state government, but 42
percent had "not very much," and 10 percent said none.
The primary candidates support some form of a gift ban or gift restrictions on elected and
appointed officials. Wolf and Schwartz propose ways to remove cronyism from public contracts.
McCord and McGinty support another reapportionment process, citing "gerrymandered"
districts.
Public trust and ethics laws are front-of-mind in the Legislature this year.
A sting operation caught four lawmakers allegedly taking cash bribes. Attorney General
Kathleen Kane did not file charges, citing flawed evidence. She turned the case over to
Philadelphia District Attorney Seth Williams, who criticized Kane for not filing charges.
State law does not prohibit lawmakers from receiving gifts as long as they are not meant to
influence their positions. They must disclose gifts worth more than $250. The Senate banned
cash gifts to elected officials. It awaits consideration in the House.
Internal reforms can be an uphill battle, said Rep. Dan Truitt, R-Berks. Truitt supports
eliminating per diems, a flat-rate payment lawmakers can receive to cover travel and expenses.
The federal rate as of October was $157 per day. Critics point to the system as a source for
potential abuse, because receipts for expenses are not required.
Last year, Truitt netted a dozen co-sponsors. This year, he has 20.
"This is going to be a marathon, not a sprint," he said. "Someone who is far enough up the food
chain has to take on these issues and say they're going to make it happen."
None of the candidates' published platforms includes reforming the per diem system or reducing
the size of the Legislature. Pennsylvania has among the largest and most expensive legislatures
in the country. Lawmakers in the 253-member body receive a base pay of $84,012, and the
annual budget is $277 million.
McGinty, McCord and Wolf said they support an expense-based reimbursement system.
Schwartz supports making records more publicly accessible and working with legislative leaders
to avoid abuse, said a campaign spokesman.
Providence Journal
May 5, 2014 Monday
1 EDITION
Pols Got Around, From Miami To Moscow
Senate President M. Teresa Paiva Weed may have won the proverbial lottery with a five-day,
expenses-paid trip to Madrid last fall, but she was not the only high-ranking Rhode Island
politician traveling at someone else's expense last year.
In their own financial-disclosure filings, Senate Majority Whip Maryellen Goodwin and Senate
Education Committee Chairwoman Hanna Gallo reported that they went on another of the
expense-paid trips that Paiva Weed reported.
They all went to Miami for a March 1-3, 2013, Education Summit titled: "Community Colleges
in the 21{+s}{+t} Century," with the State Legislative Leaders Foundation paying each of their
$1,738.89 travel tabs.
After reading about his legislative colleagues' travels, new House Speaker Nicholas Mattiello
realized that he had forgotten to report that he too went to this Miami conference in his then-role
as the House majority leader, along with then-House Speaker Gordon D. Fox.
So on Thursday, Mattiello updated the annual financial-disclosure report that he filed with the
state Ethics Commission on April 25 to reflect the $2,021 the SLLF paid on his behalf: $905.94
for his lodging, $335.35 for his meals, $716.77 for his travel and $63 for one of the receptions.
(Fox has received a 60-day extension to file his own financial disclosure report for last year.)
The conference began on Friday, March 1, with an opening reception on the pool deck of the
Mandarin Oriental Miami, led by Stephen G. Lakis, president of the State Legislative Leaders
Foundation, and Dr. Eduardo J. Padrón, president of Miami Dade College. It ended with a dinner
and cruise on The Biscayne Lady Yacht.
In between were panel discussions, such as one titled "Reaching Out: Meeting the Needs of a
Changing Economy with Flexibility and Creativity," led by Josh Wyner, executive director of
The Aspen Institute College Excellence Program.
Among Rhode Island's statewide officeholders, Attorney General Peter Kilmartin appears to
have gone the farthest.
Six of the seven trips he took in 2013 were financed by the Democratic Attorneys General
Association, which paid $4,587.65 for his travel expenses back and forth to Washington, D.C.;
Santa Monica, Calif.; Colorado Springs, Colo.; and Newport (where meals were his only
expense).
His most expensive trip took him to Moscow for an International Association of Prosecutors
Conference that ran from Sept. 6-14, 2013. While there, he was scheduled to lead a panel
discussion on human rights and the principle of equality.
The $3,348.85 tab for that trip was paid by the National Association of Attorneys General.
Explaining how that trip benefited the state of Rhode Island, Kilmartin provided this answer in a
press release issued last September: "I firmly believe that engaging in honest discussion with
prosecutors and leaders from across the globe on complex and often divisive issues will result in
a better understanding of our shared interests and, ultimately, improving human rights within the
international justice system."
The Kansas City Star
May 3, 2014 Saturday
Lobbying in Kansas draws scrutiny from the FBI
Following the 2012 primary, Kansas Gov. Sam Brownback and a handful of former aides,
lawyers and interest groups asked lobbyists to a September fundraiser for newly nominated
Republicans running for the state Senate.
“Required donation is $1,000 per race x 14 = $14,000,” the invitation said. “Make checks out to
each candidate.”
The invitation drew little notice. The candidates, most of them considered conservative, had just
won tough primaries and would likely welcome fresh cash for their campaigns.
Today, 13 of the 14 beneficiaries are in the Kansas Senate.
Now the invitation — and the deep interplay between lobbying and lawmaking it reflects — is
part of a broad federal inquiry into possible corruption in the state capital.
Three lobbyists and a former state official have told The Star and its sister paper, The Wichita
Eagle, that they have been approached by the FBI to talk about pay-to-play influence in Kansas.
The Topeka Capital-Journal first revealed the probe last week.
The FBI interviews date as far back as 2012. One interview took place just a month ago,
suggesting the probe is ongoing.
The FBI declined to comment, as is its policy.
Allegations of pay-to-play lobbying surface regularly in state capitals across the country, often
sparking investigations that dissolve amid a lack of evidence. Brownback’s office said it isn’t
unusual for some of a governor’s former associates to become lobbyists. Those lobbyists said
they’re proud of their work.
The federal probe in Topeka followed a shift in Kansas lobbying business to people who have
worked for Brownback. That draws new scrutiny to work they have done for a number of interest
groups — health care providers, universities and especially the state’s heavily regulated casinos.
In October 2012, for example, George Stafford, a one-time aide to Brownback, registered as a
lobbyist for the Kansas Star Casino near Wichita.
A month later, a second Brownback friend — one-time campaign treasurer T.C. Anderson —
said he would also lobby for the casino. Its operations were under the control of a wholly owned
subsidiary of Boyd Gaming in Las Vegas.
Both men are still registered as lobbyists for the casino. Additionally, both lobby for the Boot
Hill Casino in Dodge City, Kan.
Anderson, currently the treasurer for the Kansas Republican Party, did not respond to phone calls
or an emailed request for comment.
Stafford also declined to answer specific questions about his lobbying work.
Boyd Gaming spokesman David Strow declined to specify why his company chose Anderson
and Stafford, among others, to represent the Wichita area casino.
But he said in an email that “retaining lobbyists in the states where we operate is simply a part of
our normal course of business, as it is for many other companies.”
Boot Hill Casino did not respond to an emailed request for comment.
Lobbying clout could be crucial to a casino operation in the state.
Gaming in Kansas is overseen by a complicated system involving the state Lottery Commission
and the Racing and Gaming Commission, whose members are appointed by the governor and
approved by the Kansas Senate.
Additionally, the Kansas Legislature regularly considers adjustments to gaming statutes.
Hundreds of millions of dollars are at stake. Since its opening in late 2011, the Kansas Star
Casino has paid the state more than $94 million from gaming revenues.
In his lobbyist disclosure, Anderson said he would lobby on “gaming, lottery, health, taxation
and transportation. All issues that would affect the gaming industry in Kansas.”
Anderson’s wife, T.L. Anderson, is the current treasurer of Brownback’s re-election campaign.
Common practice
State disclosure records show former Brownback aides now represent nearly three dozen interest
groups and firms with issues before the Legislature. They include the Greater Kansas City
Chamber of Commerce, the Kansas Dental Association, Cerner Corp., Burns & McDonnell and
the Kansas Association of Realtors.
Many of the lobbying arrangements now under the public microscope include partners in a
Topeka-based firm called Parallel Strategies. The partners are former Brownback chief of staff
and current campaign spokesman David Kensinger, former Brownback staff member Riley
Scott, and Stafford, Brownback’s deputy chief of staff in Kansas when the governor was a U.S.
senator.
All three declined to discuss their lobbying work when contacted by The Star last week. Instead,
they issued a statement that said: “We have earned every client we’ve ever had. We are proud of
all of them and the work we do for them.”
Clay Barker, executive director of the Kansas Republican Party, said clients “look at the new
political environment after each election and they find who they think is, for the cost, the most
effective lobbyist for their issue.
“There isn’t anything out of the ordinary,” he said.
Friends of previous governors have also benefited from lobbying and business contracts. The
practice is common in other states and in Washington, D.C.
But a close connection between elected office holders and lobbyists can raise ethical as well as
legal concerns.
It “provides insider access, at a price,” said Craig Holman of Public Citizen, a Washington-based
watchdog group.
Additionally, some longtime lobbyists said Topeka is unaccustomed to what they consider
aggressively partisan approaches to influencing public policy. They said some groups may have
felt subtle pressure to hire Brownback associates after his 2010 election as governor, sometimes
dismissing longtime lobbyists with fewer ties to the incumbent.
“I’ve seen people who’ve been with organizations for a long time leave — and people with
associations to the governor put into those positions,” said Bernie Koch, a registered lobbyist
who has worked in Topeka as a reporter and lobbyist for almost four decades.
A spokeswoman for Brownback, Eileen Hawley, said the governor is often approached by
businesses and industries with issues before the state government. She defended Brownback’s
associations with current lobbyists.
“In a career of public service spanning decades, Gov. Brownback has worked with many talented
individuals,” her statement said. “Some remain in public service, while others have joined the
private sector.”
Hiring friends and associates of incumbents to lobby is as old as politics.
Any explicit demand from a politician that someone hire a specific lobbyist would likely be
illegal, Holman said. Just trading on insider access isn’t necessarily illegal, but it might cross an
ethical line.
To date, there is no public evidence of either, although a federal investigation suggests suspicion
of improper activities in Topeka.
Changing lobbyists
Lobbying activities by former Brownback aides extend beyond gaming.
The University of Kansas, for example, hired Scott in early 2013 for $25,000 and reassigned its
longtime lobbyist to other duties. At the time, the university was trying to fend off cuts to its
budget.
“He had good relationships with many of the freshman senators and representatives who had just
been elected, and we needed the extra assistance,” KU spokesman Tim Caboni said in an email.
Scott, the son-in-law of Kansas Senate president Susan Wagle, later picked up Pittsburg State
University as a $36,000 client even though the school had not hired a lobbyist for at least four
years.
“Riley fit the bill,” said school spokesman Chris Kelly. “He seemed to fit where we wanted to
go.”
Wichita Area Technical College, which runs the National Center for Aviation Training, hired
Scott after lawmakers cut funding for the center by $2 million last year.
It paid Parallel Strategies $30,000 for six months after employing a different lobbyist for several
years.
“I’ve been in this business a long time, and it’s about relationships,” said the school’s president,
Tony Kinkel. But, he said, “no one ever told us who to hire.”
The Kansas Dental Association hired Parallel Strategies this year to oppose legislation creating
midlevel dental providers who could perform some of the duties now handled by dentists.
“We needed to have someone with close ties to the tea party conservative Republicans,” said
Kevin Robertson, the association’s executive director.
People associated with the governor also have landed lobbying jobs with the three private
companies running the state’s Medicaid program, now known as KanCare.
Scott works for United Health Services. Amerigroup Kansas hired former social services official
Gary Haulmark. Matt Hickam, a former partner of Kensinger’s, now lobbies for Centene and its
subsidiary, Sunflower State Health Plan.
Hickam registered as a lobbyist for Sunflower at the end of 2011, about six months before the
state awarded the KanCare contracts. Scott started lobbying for United Health Services this year.
He was still working for U.S. Sen. Jerry Moran when the Brownback administration awarded the
KanCare contracts in June 2012.
Haulmark left the Kansas Department for Aging and Disability Services in October 2012, four
months after the contracts were awarded. He registered as a lobbyist for Amerigroup a month
later.
Both United Health Services and Amerigroup declined to answer questions about their lobbyists
or about any investigation.
A spokeswoman for Sunflower said that the company wasn’t pressured to hire Hickam and that
he wasn’t paid to enhance the company’s chances of getting a KanCare contract.
A public records request by The Star found that neither the governor’s office nor the two
agencies overseeing KanCare were subpoenaed by federal investigators in the last two years.
Late last year, the Greater Kansas City Chamber of Commerce decided not to renew the contract
of its longtime lobbyist, Republican Bob Vancrum, a former Kansas legislator.
Instead, the group hired Stafford for this year’s session.
“With new issues and a change in elected leadership, it seemed like the right time to make a
change,” said an email from Kristi Smith Wyatt, the chamber’s senior vice president of public
policy and programming.
Vancrum said he was not told he was being replaced by someone on friendlier terms with
Brownback.
“They said they were going to go in another direction,” he recalled.
But hiring Stafford would be a good idea, Vancrum said, “given the fact that the administration
is there.”
The Cincinnati Enquirer (Ohio)
May 2, 2014 Friday
2 Edition
Indian Hill lobbyist pays fines, avoids jail
COLUMBUS - A Cincinnati-area lobbyist must pay $2,000 in fines for failing to report gifts to
lawmakers of Bengals tickets and upscale dinners, a Franklin County judge said Thursday.
John Rabenold of Axcess Financial in Sycamore Township avoided spending one night in jail
because Friday is his 15-year wedding anniversary, Common Pleas Judge Patrick Sheeran said
after handing down the sentence.
Rabenold will spend up to three years on probation. He must also continue to cooperate with an
investigation that could result in charges against lawmakers for accepting the gifts and failing to
report them, the judge said.
Rabenold pleaded guilty in March to paying for lawmakers to see the Bengals' 23-13 victory
over the Detroit Lions on Dec. 6, 2009, and to dine the next month at Via Vite Downtown and
Lindey's in Columbus.
At the time, Rabenold, who once ran for the Ohio House as a Republican, was lobbying against
legislation that sought to regulate payday lenders, which charge interest as high as 400 percent
per year. Payday lender Check 'n Go is a subsidiary of Axcess Financial.
"I had seriously considered locking you up overnight," Sheeran said, after suspending all 180
days of the jail time in Rabenold's sentence in lieu of probation. But Rabenold's attorney, Rocky
Saxbe from Taft Stettinius & Hollister's Columbus office, told Sheeran in a pre-sentencing
meeting that Friday is Rabenold's anniversary.
"I'm not in the habit of giving anniversary presents," said Sheeran, also a Republican, after
relenting to let Rabenold walk free on Thursday.
"I think Mr. Rabenold is lucky that tomorrow is his anniversary," Franklin County Prosecutor
Ron O'Brien told The Enquirer.
O'Brien, also a Republican, said the sentencing was fair. "Mr. Rabenold does not have a record,
and so it's in line with the other sentences that have been handed down for ethics violations," he
said.
Saxbe said Rabenold would be able to pay his fine on Thursday, while he was still at the
courthouse.
With Rabenold sentenced, attention turns to the ongoing investigation into the unnamed
lawmakers that attended the Bengals game or ate the expensive dinners.
Under Ohio law, state legislators are prohibited from accepting gifts from lobbyists that exceed
$75 in value, so lawmakers who accepted the Bengals tickets may have committed an ethics
violation. In addition, lawmakers can't accept more than $75 per calendar year in food from a
lobbyist and must file a report listing gifts worth more than $25 received from any lobbyist.
No lawmakers reported gifts from Rabenold in 2009 or 2010, according to Tony Bledsoe,
executive director of the Joint Legislative Ethics Committee. O'Brien forwarded the ethics
investigation to JLEC, which will decide whether to press charges or discipline lawmakers.
Bledsoe has said the law prohibits him from disclosing the lawmakers that are under
investigation.
Lobbyists are also required to list expenses on quarterly reports filed with the state. Rabenold
filed reports but failed to list any expenses.
"With more and more money now allowed to be spent in the political process, we have to have
the reports so the citizens know," Judge Sheeran told Rabenold during the sentencing. But he
decided not to make Rabenold serve any jail time because "you are not, as far as I can see, a
threat to do this again."
"I'd just like to express my apologies for making mistakes," Rabenold said. "It shouldn't have
happened, and I let it happen."
Rabenold is no longer registered as a lobbyist but has kept his job at Axcess. The company has
implemented better oversight procedures to prevent further ethics violations, Rabenold's attorney
said.
Under the charges, Rabenold, 44, faced a maximum of one year in prison and $2,000 in fines. He
may have his probation ended after two years if he behaves, Sheeran said. If Rabenold violates
his probation or commits another ethics violation, the consequences will be severe, Sheeran
vowed.
Rabenold's failure to report lobbying expenses was discovered as part of the FBI investigation
into the money involved in lobbying about payday lending legislation.
The investigation found former state Rep. Carlton Weddington, D-Columbus, accepted bribes in
exchange for introducing legislation. Weddington resigned in 2012 and pleaded guilty in
exchange for a three-year sentence.
Later that year, then-Rep. Clayton Luckie, D-Dayton, was charged with personally spending
more than $130,000 intended for his campaign and then covering up his actions by falsifying
records. Luckie canceled his re-election bid but declined to resign his Statehouse seat despite
calls from both Republican and Democratic caucus leaders for him to do so.
He served out the remainder of his term, drawing his taxpayer-funded salary the entire time.
Luckie later pleaded guilty in exchange for a three-year sentence.
Rabenold, of Indian Hill, ran unsuccessfully for state representative in 2008, receiving more than
$100,000 in campaign contributions from payday lenders.
Rabenold and Symmes Township's Grace Kendrick lost a three-way Republican primary to nowstate Rep. Ron Maag.