The Fine Print

What you need to know about Florida's seven-year-old gift ban

UPDATED:

Sen. Tom Lee - who has already acknowledged that his effort is likely a long shot this year - moved his  rework of the state's seven-year-old "zero tolerance" gift ban through its first committee stop on Monday.

Lee is pushing through the changes to take away some of the constant criticisms that he's heard over the years since the gift ban was first passed.

These include provisions that lawmakers "can't even take a cup of coffee" or "a bottle of water" during a meeting with a lobbyist. His proposed changes would also attempt to make it easier for a lawmaker to show up at a luncheon sponsored by a hometown group.

The kicker in Lee's bill is that it would revert everything back to current law on June 30, 2015. Lee said he put these provisions in to make sure that just in case the changes he proposed turn into big loopholes the law will automatically revert back to the way it once was.

Lee's effort is a long shot because there is no House companion bill - and he's trying to get it through his first committee during the mid-way point of the session.

But it's important to recall a bit of history here to understand why - and how - Florida got to where it is now.

The state first cracked down on lobbyist gifts to lawmakers after an investigation by State Attorney Willie Meggs in the early '90s. This came in the wake of reports that lobbyists paid for trips to various exotic locations. From a Sun-Sentinel story:

``It has gone on year after year,`` said prosecutor Anthony Guarisco of legislators vacationing luxuriously at lobbyists` expense.

The seven-page report from the grand jury reads like a deluxe travelogue as it outlines where lobbyists took legislators. The destinations included Riverview Plantation, Camilla, Ga.; Monterey,  Mexico; Anchorage, Alaska; Colorado; Paris; Zurich, Switzerland; and Monte Carlo, Monaco. Also on the list were several out-of-state college sports games.

Meggs wound up charging legislators for failing to report gifts worth more than $25.

State lawmakers in response to the ongoing coverage of the trips changed the law to ban all gifts worth $100 or more.

But by 2005 it was clear that a system had arisen that allowed lawmakers to still receive benefits from lobbyists. It was done in a way to sidestep disclosure requirements that mandated that lobbyists report expenditures over $25.

From a Feb. 28, 2005 Miami Herald story:

The meeting of Miami-Dade lawmakers over dinner was held at an oak-shaded French restaurant near the Capitol.

On the agenda: fighting a controversial change in school funding that could hurt urban districts.

The tab for that night at Chez Pierre: $481.89 - about $70 for each of the seven legislators in attendance. The bill was paid by Bill Rubin, a powerful lobbyist who represents, among other clients, the Broward County School Board.

Almost a year after the dinner, Rubin has yet to file the gift-disclosure form required by Florida law. Had a Miami Herald reporter not accidentally walked in on the event, the public would never have known about it.

Rubin, who did not return calls for comment, isn't alone in how he deals with Florida's disclosure requirements for lobbyists. A Herald review of three years' worth of gift-disclosure forms shows that only a few lobbyists regularly report when they hand out gifts or pay for meals worth more than $25 - the threshold for reporting for legislators or their aides.

That same story detailed that lobbyists such as Ron Book side-stepped the disclosure requirement by inviting large groups of people to receptions he paid for which brought down the per-person costs. Other lobbyists would divide the amount spent on a legislator by dividing it by the number of clients they represent.

That same year saw a series of stories in the Miami Herald about the relationship between lobbyists and legislators including:

Rows of sushi and Chinese food greeted the political power-hitters at Sen. Alex Diaz de la Portilla's upscale home in Tallahassee as a guitarist strummed away and the wine and liquor from the open bar poured freely.The March 9 party was in honor of Sen. Victor Crist and his new fiancee. The main bankroller for the $5,000 tab: prominent South Florida lobbyist Bob Levy, whose lengthy roster of clients includes the Professional Wrecker Operators of Florida.
  

....Because as many as 150 people were present at the party, the event would not violate Florida's ban on gifts of more than $100 to public officials. But the party is another example of the often-hidden world in the state capital where legislators have a cozy relationship with lobbyists who represent special interests.

Or this one:

A prominent Miami lobbyist, whose list of clients includes tow-truck operators, nurses, hospitals and the New World School of the Arts, is sponsoring an engagement party Tuesday for freshman Republican Rep. Anitere Flores.

All 25 members of the Miami-Dade County legislative delegation have been invited for cocktails and dinner at the New Chinatown Restaurant in South Miami to celebrate the upcoming wedding of the 29-year-old Flores, a lawyer who works at Florida International University

And this one:

A month ago The Miami Herald reported that (Sen. Mandy) Dawson had sent out a letter to lobbyists asking them to help pay the $2,500 she needed to take an economic development trip to South Africa. In her letter on official Senate stationery, Dawson asked lobbyists to send the money to the state's Legislative Black Caucus.

Two of the people she wrote to, including powerful South Florida lobbyist Ron Book, gave money to the caucus, as did a South Florida ophthalmologist and well-known fund-raiser.

And in the incident that helped propel the decision to push the ban during a 2005 special session:

The owner of Gulfstream Park and other racetracks across the country paid nearly $50,000 to fly four powerful state lawmakers to the company's headquarters in Toronto this summer, but reported the costs as a contribution to the Republican Party of Florida.

The two-day trip in July came in the midst of an ongoing effort by track owners in Broward County to persuade state legislators to spell out when slot machines can be installed there. Broward voters approved allowing four parimutuels in the county to have slot machines, but state legislators ended the 2005 spring session without passing a bill to let the tracks add the machines.

The payment came to light this week when the state Republican Party filed its quarterly contributions report....There is nothing illegal or improper about such large contributions, as long as they are controlled by the party. But they cannot be made to individual legislators: State law prohibits giving lawmakers gifts valued at more than $100.

While one of the lawmakers on the trip, former Senate President Jim King, insisted it was simply an opportunity to raise money for the state GOP, current Senate President Tom Lee said no one in the party ever authorized the fundraiser.

It's also important to note that Lee and the Senate initially did not propose a complete ban on all expenditures by lobbyists. The original bill, SB 6B, instead proposed that lobbying expenditures be restricted to food and beverage and novelty items and that detailed reports be filed detailing which legislator or legislative employee received the gift. That same legislation also would have barred convicted felons from serving as lobbyists unless they had their civil rights restored.

Tallahassee lore - which several legislators have since confirmed - has that the House did not like the reporting mechanism included in the bill and instead proposed a zero ban.

The thinking was that the Senate would not accept such a strict requirement and the status quo would remain. Instead the Senate did adopt the "zero tolerance" language and the bill was passed and sent to the governor. This final measure changed the language regarding felons to apply it only to someone convicted after Jan. 1, 2006.

Interestingly enough, that bill actually also wiped out a requirement that lobbyists twice-a-year file overall lobbying expenditure reports.

These reports not only included entertainment expenses, but also included any money spent on media advertising, research, publication etc. In its place lobbyists - excluding those working directly for local governments or associations - began reporting how much they got paid by their clients. (A legal challenge to this portion of the bill did not succeed.) But what this meant is that lobbying firms were no longer required to report how much was spent say on TV ads trying to convince lawmakers to pass or defeat a bill.

Since the bill was passed there have been plenty of articles that have pointed out the ways to get around this ban, including lawmakers using political committees known as committees of continuous existence, or relying on perks given in connection to fundraisers.

There also unsubstantiated anecdotes that a new barter system has been established where a legislator will attend an event at the home of a lobbyist and show up with a bottle of wine or some other item to cover their costs.

Obviously to use an oft-heard phrase - trying to put limits on the relationship between lobbyists and legislator is a "work in progress."

Will Rick Scott and lobbyists be among today's primary losers?

While today's primary election in Florida lacks the drama of a high-stakes statewide race like two years ago there will be much to ponder once the smoke clears by Wednesday morning.

Most of the true intrique will of course surround the numerous proxy battles - and their role in the future leadership of the Florida Senate. Here's a previous overview on that.

But there are also a whole slew of other trends/stories worth paying attention to that could have ramifications in this year's general election, next year's legislative session and the 2014 elections when Gov. Rick Scott will seek a second term.

1. Will the "toxic" brand that Democrats seem to attach to Scott really play out? Several Democratic primaries - include at least two state Senate seats and a North Florida congressional seat - have included various allegations that one of the Democrats in the race is too cozy or too comfortable with Scott and his agenda. Former Sen. Al Lawson - who is running for Congress against Rep. Leonard Bembry - went so far as to ask people to give him money to help fight "lies" that he voted for Scott over Alex Sink.

If this strategy of trashing your opponent as a ally of Scott doesn't work in a primary election then how big a factor is it in the general election or heading into 2014?

2. What happens if Rachel Burgin defeats Tom Lee in the state Senate GOP primary in Hillsborough County?

Senate leaders backed former president Lee, but that didn't stop some lobbyists from helping out Burgin against their old foe. Lee's trangressions are many to some lobbyists, including his push to force them to disclose how much they were getting paid to lobby the Legislature. One of the attacks against Lee dredged up an old divorce and questioned his character.

One could be tempted to conclude it's just one race and the outcome shouldn't have an outsized impact in the halls of the Capitol.

But when asked recently if there would be any consequences, incoming Senate President Don Gaetz said this: "I don’t think that any vengeance has to be planned for these Democratic lobbyists. I think the stink of dirty personal attacks will hang on them and they are making their own problems."

And Gaetz added that he thought that some of those who did help Burgin went "way, way over the line."

3. Will today's election effectively end the Senate presidency battles? No one knows for sure what the pledge cards look like, but if Mike Weinstein and Jim Frishe and some other Republican state senate candidates go down then there will be much speculation that Jack Latvala's bid to become Senate president in 2016 is doomed.

Latvala is an old-hand at political intrique so it would probably be a bit premature to write his obituary. He may hope that his alliance with Andy Gardiner may help him in the long run. The problem, of course, is whether or not he has to deal with people who change their minds on backing him if he has a bad day today.

4. Will Alex Diaz de la Portilla become the ultimate shadow warrior in the Legislature?

The former state senator's political skills should never be underestimated. But it could be quite fascinating if he gets elected to the House along with his brother Renier. (Miquel Diaz de la Portilla is already in the Senate.) It would not be far-fetched to envision scenarios where Alex DLP quickly begins forming alliances in leadership fights and special interest lobbying battles.

5. Which interest group emerges from the primary stronger, or weaker? A backstory in several primaries is the money that groups engaged in ongoing public policy fights, whether it's gambling or private school vouchers for low-income families, wound up putting into play.

A win by Mack Bernard over Jeff Clemens, for example, in a Palm Beach County state senate seat would continue to dilute the influence that the state's teacher union has when it comes to fighting back against vouchers.

Additionally, it will be worth noting if certain attacks regarding key legislative issues - like property insurance, for example in the Frishe-Jeff Brandes state senate race  - prove harmful at all.

 

 

 

Could any of these bills get vetoed by Gov. Rick Scott?

Gov. Rick Scott on Wednesday will sign several bills that consist of the "jobs agenda" that he outlined last fall.

And that's when it will start to get interesting.

There have been few surprises so far since the 2012 session ended. Scott signed the "inspirational messages" bill and this latest batch of legislation includes an overhaul of the unemployment compensation system and tax breaks, including another small cut of the state's corporate income tax.

But in the next few weeks Scott will sort out the remaining bills from this year and figure out whether or not he plans to go along with many of the ideas that his GOP colleagues in the Legislature acted on.

Not counting his budget vetoes, Scott last year vetoed 10 bills sent to him by state lawmakers, which is actually on par, or even a little bit below other governors in recent years.

Gov. Charlie Crist - who was at war with lawmakers during his independent bid for U.S. Senate in 2010 - vetoed 17 bills his final year in office (several of which were later overridden) and 18 bills in 2007. Back in 2005 then Gov. Jeb Bush a.k.a. "Veto Corleone" nixed some 36 bills sent to him by the Legislature.

It was Bush who told Scott in an email before he became governor that it was okay to veto "stupid bills."

Here then are some bills to watch Scott on in the next few days and weeks:

HB 5301: Back when Scott was campaigning against Bill McCollum in the GOP primary in 2010 he actually came out against what he called mandates being imposed on local governments. Scott told a group of business leaders in Panama City that he did not support strict limits on spending and taxes for local governments, saying at the time "I believe that what Tallahassee should be doing is dealing with Tallahassee issues." 

But sitting on his desk is a budget conforming bill that contains a contentious provision that withholds money from counties in an effort to collect $325 million in contested past-due Medicaid billings. County governments have argued this is yet another mandate, an argument that should have some resonance with Scott.

This legislation, however, includes several other changes, including a limit on how many times Medicaid will pay for hospital emergency room visits for non-pregnant adults and a provision that would allow the children of state employees to be enrolled in the state's subsidized KidCare program. Scott must act on this bill this week but there are signs that he will let it become law because it is tied to the state budget. (UPDATE: Scott signed the bill, although in a letter the governor tried to assuage counties that the state would "work diligently" to make sure that all the billings are valid and accurate. Counties, meanwhile, sharply criticized the decision as a "body blow" to taxpayers.)

HB 7129: This is the tuition bill for the University of Florida and Florida State University. If it becomes law the legislation would allow these two research universities to raise tuition annually above the existing 15 percent cap that now exists in state law. The logic behind the bill - which was a top priority for House Speaker Dean Cannon - is to give UF and FSU the financial resources to make themselves more nationally competitive. But the bill also clashes with Scott's oft-repeated line that tuition should not go up this year and that universities ought to give him more examples of spending existing money wisely before hiking tuition. (UPDATE: Scott vetoed this legislation saying it would increase the debt burden of students.

SB 1994: The Florida Polytechnic University bill. This is the legislation pushed by Sen. J.D. Alexander that would officially divorce the Lakeland branch campus of the University of South Florida and turn into the state's 12th public university. Scott so far has refused to take a stance on the creation of a new school, but has expressed skepticism about it. The problem for Scott, however, is if vetoes the bill then he wipes out $16 million in funding, including $6 million for the USF College of Pharmacy and $10 million to allow current USF Polytechnic students to complete their degrees at USF. (UPDATE: In a bit of surprise, Scott signed this legislation into law.)

HB 7117: This is an energy bill that was championed by Agriculture Commissioner Adam Putnam. But the legislation - which includes $16 million in renewable energy tax credits - has come under fire by several different groups, including conservative organizations as well as the Florida Renewable Energy Producers Association. Scott during his first two years in office has continued to be skeptical about energy issues, although his main objection has centered around proposals that would raise utility bills in order to pay for renewable energy. (UPDATE: Scott signed this law although he expressed concerned about some of the provisions.)

HB 5011: State Information Technology. For most people outside of Tallahassee, this bill means little. But it's a big deal for the lobbyists and others who make a living off the millions spent by the state on technology. This bill blows up an existing state agency - the Agency for Enterprise Information Technology - and creates a new agency called the Agency for State Technology which reports to the governor and Cabinet. For those who aren't keeping count this would be the third reconfiguration of how the state handles technology issues in the last decade. The legislation also halts and repeals an already begun process to consolidate the state's email service. Rep. Denise Grimsley, the House budget chief, defended the move to get rid of the email consolidation, contending it would wind up costing the state more than anticipated. But it's worth pointing out that Scott himself early on wondered aloud why state government had multiple email accounts as opposed to the way that most businesses handle it. (UPDATE: Scott vetoed the bill.)

HB 945: Broadband Internet Service. This is another bill that not a lot of people kept an eye on. It transfers a federal stimulus-backed program from one state agency to another. But the legislation was pushed into law at the urging of lobbyists who work for a vendor that held a state contract that was not renewed. The Associated Press already reported that the legislative proposal was so closely aligned with the lobbying firm of former Republican Party of Florida chairman Al Cardenas that the Senate bill sponsor referred questions about the bill to a lobbyist working for Cardenas. That same AP story pointed out that the state agency now in control of the program has warned internally that the transfer will require federal approval and could put millions in federal grants in jeopardy. (UPDATE: This bill was signed by the governor.)

HB 937: Legal notices. Just consider this one a bit of a hunch. Scott of course famously shunned newspaper editorial boards during his 2010 campaign for governor. But since that time he has actually taken a keen interest in the news industry, including recent business moves in Florida such as the decision by Halifax Media to acquire papers owned by the New York Times Company. This legislation is aimed at ending a few years of battle over the future of legal notices. The bill requires the online listing of legal notices for no extra charge, but also keeps them in printed newspapers. In previous years legislators had tried to end the use of printed legal notices completely. The final product is supported by the Florida Press Association so it will be interesting to see how the governor responds.

Major change coming to powerhouse lobbying firm

A major shakeup is coming to one of the major lobbying firms in Tallahassee.

Former Florida Attorney General and Secretary of State Jim Smith is leaving the firm that he has run since 1998 with his son-in-law Brian Ballard.

Smith & Ballard is routinely one of the top money-making firms in Tallahassee. Ballard is known as a top fundraiser for Republican candidates and was especially close to former Gov. Charlie Crist.

The most recent legislative lobbying filings show that Smith & Ballard had close to 100 clients and collected more than $1 million in income during the first three months of the year.

The new firm is going to change its name to Ballard Partners.

In a statement, Ballard said: "The firm has enjoyed tremendous growth with the latest office expansion in Jacksonville and several new professionals joining the team this year. Our new name is another step moving Ballard Partners forward. I want to personally thank Jim for the unparalleled professionalism and value he has brought to our firm as we’ve advanced into what we are today. Jim will be missed and we wish him well in the future.”

Smith, who was heading out of the country on Thursday, would not answer questions directly about why he was leaving the firm.

"I've got nothing to say,'' said Smith as he was driving with his wife away from his office. "We're going to Europe."

In an official statement put out by the firm, Smith said: "The last thirteen years as a partner at Smith & Ballard have been rewarding, both professionally and personally. I extend my thanks to Brian and our dedicated team of professionals. I am very proud of what we have built and I have every confidence they will continue to thrive – I wish all of my friends and colleagues the best in the years to come.”

While Smith is leaving he is not ending his lobbying career. The statement from the firm said that Smith would continue to do public affairs and lobbying work.

Smith & Ballard has been expanding its operations outside of Tallahassee. Earlier this year the firm added a Jacksonville office and hired Susie Wiles, the campaign manager for Gov. Rick Scott.

Smith, 71, has been a fixture in Florida's political circles. He started as a Democrat and was elected attorney general. He ran for governor in 1986 where he lost the runoff election. He switched parties to Republican and became secretary of state in 1987.

 

Democrat and CFO candidate says it's time to stop trusting lobbyists

The Democrat running for chief financial officer says it is time for Florida lawmakers to stop trusting lobbyists.

Loranne Ausley is blasting the Florida Legislature -- as well as GOP opponent and Senate President Jeff Atwater -- for failing to follow a law that requires the state to verify how much lobbyists are getting paid to influence legislators, the governor and others in Tallahassee.

The Sarasota Herald-Tribune reported last December that the Legislature was not following a 2005 law meant to give citizens a better idea of how much money was flowing into the Capitol. Lobbyists have been required for four years to file reports listing how much they get paid -- but the state has relied on an "honor system" regarding these reports, despite the fact that state law calls for random audits.

"I think it's outrageous the Legislature and Jeff Atwater have refused to follow the law," Ausley said. "We need to clean up the pay-to-play culture in Tallahassee. We need to hold lobbyists and politicians accountable."

Brian Hughes, a campaign spokesman for Atwater, said instead of constantly criticizing the Legislature, Ausley should tell voters what she plans to do if she is elected.

The audit requirement was included in the 2005 law that also banned gifts to lawmakers from lobbyists. The GOP-controlled Legislature, however, has disagreed on how to carry out the audit requirement and raised concerns about the cost. Plus, hardly any accounting firms have been willing to take on the audit work.

Former Senate President Tom Lee, who pushed for the law, says there's "bipartisan" blame to go around.

Read the entire Herald-Tribune article here.

 

Lobbying income not "bullet proof"

Florida lobbyists reported receiving less money during the first six months of this year compared with the same time period in 2009.

This means that professional lobbyists were paid slightly less for work they did during the recently completed 2010 session. An analysis done by the Florida Tribune of new lobbying compensation reports turned in this past weekend shows that the median amount for the first two quarters was $61.8 million or $2.72 million less than the first two quarters of 2009.

"We are not bullet proof,'' said Brian Ballard, senior partner at Smith & Ballard. "People have cut back."

Keep reading here.

Oil spill legal team leader says son's lobbying for BP is 'irrelevant'

One of the leaders of a newly created oil spill legal team for Florida says it is "irrelevant" that his son lobbies for BP America.

Jim Smith and Bob Butterworth, both former attorney generals, were named by Gov. Charlie Crist and Attorney General Bill McCollum on Monday to lead a pro bono legal advisory council. This council will identify law firms and help develop legal strategies in case the state needs to sue BP, the company that operated the Deepwater Horizon oil rig.

Smith's son, however, works for a Tallahassee lobbying firm that last year earned anywhere from $40,000 to $80,000 representing BP before the Legislature.

"The fact that he lobbies for BP is nothing in my equation,'' said Jim Smith. "That's irrelevant."

See more here at the Florida Tribune.

A lesson in how things really work in Tallahassee.

It took Peggy Lee six hours to drive from her home to Englewood to testify before the Florida Legislature about the need to provide more money to 911 systems.

But Lee -- the mother-in-law of murder victim Denise Lee -- learned in a matter of minutes how things really work in Tallahassee.

 

Lee got roughly 1 minute to talk to legislators on Wednesday. Lobbyists for and against a proposed bill on 911 funding got anywhere from 5 minutes to 20 minutes.

 

Roughly 30 seconds after Lee spoke, a House committee delayed action on the bill she testified on. A move was made to bring the bill back up later, but there was confusion over House rules, ultimately leading to a decision to shut the meeting down.

 

"We just feel very frustrated," Lee said. "I guess that's just how it works."

 

Read more here at the Sarasota Herald-Tribune.

Legislator will try one more time to get lobbyists to tell the truth

Sen. Alex Villalobos has had a change of heart.

Just two weeks ago the Miami Republican said he was giving up and had no intention on filing his "Truth in Government" Act that would require those testifying before the Legislature to swear to tell the truth.

But he said he changed his mind after talking to Senate President Jeff Atwater, R-North Palm Beach. He said the Senate president supports having lawmakers push ahead with several bills that deal with ethics, including some of those being sponsored by Sen. Dan Gelber, D-Miami Beach. So Villalobos refiled his bill, which would make it a crime to lie to a legislative committee. It would not apply to legislators and children.

"I see an opportunity given the president's desire to move bills that address ethics and corruption,'' said Villalobos this week.

There has been a renewed interest regarding ethics in the wake of a long list of scandals in the last year - including the arrest of Scott Rothstein and Alan Mendelsohn. Atwater was among those who met with agents from the FBI last year to discuss issues surrounding Mendelsohn.

Gelber said he too has talked with Atwater and he feels confident that some of his bills have a shot of success. Gelber has filed no less than eight bills dealing with campaign contributions, ethics, and the legislative process. Just last week he filed a measure, SB 1554, that would make it crime for any public servant to fail to advertise a solicitation for procurement.

"My sense is that the Senate president recognizes the need to do something,'' said Gelber. "I'm hopeful that a great number of bills will get a hearing if not approved."

Tell the truth in the Legislature? Not this year, maybe not ever

State Sen. Alex Villalobos, R-Miami, is giving up.

For the last several years Villalobos has tried to push a bill through the Florida Legislature that would have required those who appear before legislative committees to swear to tell the truth.

The legislation was an outgrowth of the contentious 2003 series of special sessions on medical malpractice where the Florida Senate eventually decided to place several officials - including the head of the state's main malpractice insurer - under oath. Villalobos concluded that the testimony before legislators would change dramatically if everyone who testifies would be put on notice that they could be charged with a crime if they lie. His bill was primarily directed at lobbyists since it exempted legislators from the requirement.

But Villalobos legislation has constantly gotten bogged down. Last year House leaders refused to move his bill beyond one committee.

So Villalobos has decided he won't file the bill again during his final session.

"I've never gotten traction,'' said Villalobos.

Villalobos said his inability to get the legislation seriously considered sends a message that lying in the halls of the Florida Legislature is no big deal.

"It says people can go to the Capitol and lie and nothing will happen to them,'' said Villalobos.