Sunlight Foundation

Only Sunlight Can Lift Congress' Ethics Cloud

Are Members of Congress using inside information gathered as part of their jobs to make financial investments (and get rich...er?) That question is at the heart of yesterday's 60 Minutes report. Reporter Steve Kroft accused current House Speaker John Boehner and former speakers Nancy Pelosi and Dennis Hastert, among others, of engaging in a legal form of insider trading. (We first broke the Hastert story in 2006.)  What the story didn't explore was how transparency aided Hoover Institution research fellow Peter Schweizer in drawing these connections, and how better transparency would deter problems from arising.

Schweizer's analysis drew upon congressional financial disclosure reports, one of many ethics-related documents that the House and Senate make available to the public. While all these documents should be available online, in real-time, and in machine-readable formats, most are not.* Usually, members of the public must physically travel to the House or Senate and print out ethics documents, one page at a time -- you will not be provided an electronic copy, no matter how much you ask,  even though the documents are already digitized. In fact, we compiled the first public list of all the "publicly-available" documents from the House and Senate, with information about how to obtain the reports and what they contain. We also called for the GAO to finally live up to its statutory obligation to review whether the personal financial disclosure forms should be updated.

Looking at the financial disclosure reports, only the House publishes them online; the Senate archaically requires you to go to the Senate in person to ask for this information. If you want to analyze the Senate's financial disclosure reports, you have to re-key the data into a computer by hand; there's no database to facilitate analysis. This is equally true if you want to see which Member or senior staffer has been promised a plum job by an outside company, foreign travel expense reports, legal defense fund contributions, and more. If you're not in Washington, you'd better be willing to book a plane ride to DC; otherwise, you're out of luck.

We won't know how much effort it took to make the connection between congressional activity and investing, which formed the basis of the 60 Minutes report and Schweizer's well-timed book "Throw Them All Out," but it likely was considerable. Without better data, it is hard to tell who actually benefited from trading on inside information. We also don't know the extent to which investors mine data from capitol hill about industry activities to help make investment decisions, and we can't know that until legislation like the STOCK Act (which we wrote about here) becomes law.

But what we do know is that the House and Senate can do much more to be transparent. They need to make it easier for the public to see who is trying to influence them, how they behave while in office, and the work that they're doing. That's why we are advocating for lobbying reform, ethics reform, and a lot more Sunlight on the process.

  • Update 1: These documents are not available online from the House or Senate, but some third parties, such as the Center for Responsive Politics and Legistorm, have digitized many of the documents. However, it's not always possible to access the data in bulk, and it is possible that the third parties introduced errors in the digitization process.

  • Update 2: I should also mention that Sunlight gave a grant to CRP for digitization of the personal financial disclosure forms, travel disclosures, and other documents in 2007.

Sunlight Weekly Roundup: New York Govenor Andrew Cuomo launches new website to increase transparency and emphasize citizen engagement

  • New York Governor Andrew Cuomo has made good on his campaign promise to increase his own transparency by launching a new website called CitizenConnect. This website provide citizens with details about his schedule and allows them to conduct online town halls with him. Jimmy Veilkind has been critical of Cuomo's transparency record in the past and sees this as a step in the right direction. Cuomo hopes the site will provide “an open forum for New Yorkers to interact and participate in their government.” Find out more on Veilkind's take on the new website at Capitol Confidential.
 

  • According to a study done by The Sunshine Review, a nonprofit that uses a transparency checklist to evaluate state and local government websites, the state of Florida has a B grade for online transparency. Despite several Florida county websites receiving A+ grades for online transparency, the overall grade average was weighed down by the low marks given to the state website MyFlorida.com. The site earned a B due to its tough-to-navigate search function, not providing information on state-paid lobbying and agency lobbying contracts, and not providing "comprehensive information" for making public records requests. Find out more about Katie Sanders' take on Florida's ranking at the Miami Herald Naked Politics Blog.
 
  • Cook County, Illinois just launched an online open county data catalog. For its template, Cook County used the Model Local Open Government Directive, which was designed to fill a need for open government policies  expressed at CityCamp Colorado. Bryan Gryth, Vice-President and Director of Colorado Smart Communities maintains, “Today is a good day for open government and the citizens of Cook County because they have a more transparent county government and that transparency will hopefully lead to a more informed citizenry that can hold their government accountable.” Check out Sebsatian James' take on the  campaign on the Cook County Blog.
  • San Francisco's oldest municipal Sunshine Ordinance was established and extended thanks to the San Francisco Bay Guardian.  They are now reporting that enforcement of this ordinance was left to an ethics commission that simply would not discipline recalcitrant officials, thus leaving the task force powerless to give citizens the openness they have a right to. She maintains that this oversight allows government departments to lie about embarrassing public records with little impunity. See why Terry Francke describes the Sunshine Ordinance as a "cloud of inaction" at CalAware Today.
 

Sunlight Weekly Round-up: Florida accidentally deletes public records

Whether it is a top-down issue or the other way round, we can not help but notice a disconnect between what Florida's Governor -- Rick Scott preaches and what he practices. Earlier this year, one of his top aides avoided using emails, because they create a paper trail. And the mixed messages ranging from designing Florida Has a Right to Know , to imposing fees on public records that were previously free, are not helping.

  • A private company that provided e-mail services for Governor Rick Scott’s transitional administration “accidentally” deleted all emails from the Florida governor-elect's office soon after he took office. Peter Schorsch is wondering whether this was a genuine accident considering the governor’s disregard for open government laws. See how he equates it to the ‘dog ate my homework’ situation on SaintPetersblog.
  • The city of Laurel in Maryland has amended their background check law on all candidates vying for city council office. After consulting with the American Civil Liberties Union (ACLU) and the National Association for the Advancement of Colored People (NAACP), the city’s mayor Craig Moe, said the original law was meant to increase transparency to the election process but now feels that conducting a background check could be considered discriminatory. Gordon Basichis notes one plausible aspect of the amendment law; which is the immediate removal from office, of anyone convicted of a crime while in office. Read on at Corra Daily Planet.
  • Campaign finance laws in Fulton County, Georgia could soon see some change. A resolution created to stop any corporation, officer, agent or individual making campaign contributions or gifts from seeking county contracts, is under consideration by the county’s Board of Commissioners. Already proposed in Indiana, and found problematic in Colorado, the new resolution seeks to regulate conduct of campaign financing and contributions. Stefan Passantio is screaming “fire” about this “pay-to-play” ordinance so head on over to the Pay to Play Law blog to see why.
  • Citizens in New Mexico will now be able to access complaints against police officers under a new ruling by the state’s Supreme Court. Alicia Feichtmeir, an attorney in litigation and dispute resolution shares that information contained in the citizens’ complaints belong to the citizen in question regardless of whether or not the allegations made a true or false. See how she compares this ruling to the Washington’s Public Record’s Act on Local Open Government Blog.
  • John Knutsen a Puyallup, Washington Councilmember was awarded a key award by the Washington Coalition for Open Government for opting out of informal discussions that happen outside of the scheduled council meetings. The informal meetings, also known as rolling meetings are used by some councilmembers in groups of two to three to discuss official issues, without the burden of notifying the public. For more on how open government supporters are praising the Councilmember’s action as a transparency effort, see Puyallup NOW.
 

New House Ethics Committee Report Search Tool

The House Ethics Committee is responsible for investigating and making recommendations on the enforcement of House ethics rules. In an nod towards transparency, its reports and statements are published online -- but they are virtually unusable. The Committee publishes documents in an unsearchable PDF format, spreads them out over of 24 pages, and gives them impenetrable titles like "Statement of the Chairman and Ranking Minority Member." Search engines (like Google) cannot see the documents, and only the most patient will click on each link to see what's inside.

We've taken all 120+ documents, made them searchable, and published them online in a database. Now every document from December 1998 until July 2011 can be searched -- at once. It's easy to find the 20 documents that refer to Rep. Rangel, or the 15 documents that refer to (former) Rep. DeLay, or anything else that you're looking for. The web tool DocumentCloud has made this all possible.

The search isn't perfect, of course. We had to use optical character recognition technology to transform the PDF into a searchable format, so there's a number of transcription errors. It would be better if the committee posted the documents in a searchable format, or even better, in an open format. The committee should also publish an index that links to all relevant documents for each matter, and include a description for each document of what it contains. Until then, our House Ethics Committee search tool will be an invaluable tool for anyone monitoring the House Ethics process.

We'd be remiss if we didn't give the House Ethics Committee kudos for at least publishing these documents online. One look at the Senate Ethics Committee website makes clear that things could be much worse.

 

Tool to Search House Ethics Committee Reports

Sunlight weekly Round-up: Of Tax breaks and Transparency

In an interview with Newsweek, former U.S. President, Bill Clinton suggested lowering corporate tax rates as one of the ways of creating more jobs and solving the country's current debt problem. He added that this should be done together with a reduction of loopholes that cause unfair disparities among corporations. Here at Sunlight, Ryan recently used Influence Explorer, to connect the dots between tax breaks and money in politics. The former president's suggestion may have good intentions but left and unchecked, tax breaks to corporations which end up donating huge sums of money to political candidates, can determine the type of government we get.

  • Details on the value of tax breaks in Oregon will now soon be available for the public to see. The state’s governor, John Kitzhaber has signed into law, House Bill 2825, which will require all information on tax breaks given to business -- including their names, addresses and the reasons why they are receiving the breaks -- to be posted on this website. According to Mark Robyn, the breaks have been likened by policy wonks, to government spending even though they receive less oversight. Nonetheless, taxpayer watchdog and consumer advocacy groups are welcoming the transparency news on Tax Policy blog.
  • Politics of disclosure is at play in Minnesota. A conflict on what should and should not be disclosed is brewing between the Governor’s office and the legislature. Open government award recipient Rich Neumeister, who is certain there is secrecy in both state and local government, is making some suggestions: make data public; including all communication between the governor and the legislature. A legislature expert himself, Neumeister is well aware that the legislature may not be under the Minnesota Government Data Practices Act, but it is still answerable to the public and should therefore be transparent. Details on Open Secrets.
  • A bill sponsored by Michael T. Morley is causing a stir in Utah. HB 220 - also commonly known as “We are a Republic” - is according to Curt Bentley, the latest form of contempt for the ordinary voter. Citing the previous disregard of public records laws with the introduction of HB 477, Bentley critics Utah’s caucus system as one that does not prevent indifference towards voters but instead renders them powerless to influence election results. Read more as he writes about the thin line between republicanism and guardianship and what democracy has to do with both, on Utah Political Summary
  • Stacey Kalberman, Georgia’s Ethics Commission executive secretary, revealed earlier that she was being forced to resign in order to stop an ethics investigation of Gov. Nathan Deal. Now, journalism award winner, Jay Bookman, shares the details of the Commission’s meeting that led up to the former executive’s announcement of her resignation. Bookman adds that the pleasantries between the Ethics Commission and Kalberman only created more suspicion from the members of the press who feel that the Commission is not being transparent about the governor’s investigation. Jay Bookman has more.
  • Washington state Governor Christine Gregoire will now continue to withhold records from a public records request under the rubric of the executive privilege. In a superior court ruling, over a lawsuit filed by the Freedom Foundation against the governor, a judge ruled that the executive privilege, that exempts the governor from disclosing public records, does apply. Dennis Box blogs that a follow up ruling to decide if the executive privilege is indeed part of 300-plus recognized statutory exemptions in the Public Records Act, has been scheduled. More on News Notes.

Sunlight Weekly Round-up: Double standards in transparency

When lawmakers introduce legislation that is supposed to increase transparency, naturally we expect that they will lead in the everything transparent movement - including the proverbial practicing of what they preach. Unfortunately, we are starting to see cases of selective transparency where public officials are willing to be "open" about their activities only when it suits them. What is worth noting are the adverse effects to not being fully accountable. Considering that financial benefits of being transparent are hardly discussed, perhaps bearing in mind the costs in lawsuits for agencies (including states) that violate sunshine laws - can be an incentive for lawmakers to observe the rules they set up.

  • The New Mexico state Senate passed a rule that will prohibit the public from recording any of the public meetings conducted in the state capitol. Tracy Dingmann feels this is a violation of the First Amendment. Showing how transparency goes both ways, Dingmann asserts that just as Senate staffers are allowed to record public meetings, so should the public. Now she is reminding Gov. Susana Martinez to stick to her promise of “bringing the people to the process”. Read all about it on Clearly New Mexico.
  • A new bill sponsored by state Sen. Joyce Foster is putting ethics in the Colorado legislature under review. The HB 1220 bill is intended to accelerate funding of state transportation projects but ethics monitors are concerned that its major supporter, the Colorado Contractors Association, also hires the Senator’s son David Foster as their lobbyist. Political investigative writer Chuck Plunkett sees a possible conflict of interest and sets the conversation going on Look Out Colorado.
  • Health care providers, lobbyists, and residents of Minnesota have joined hands to bring more accountability to Health Maintenance Organizations (HMOs). Paul Demko blogs that key among the proposals introduced is Rep. Larry Hosch’s bill that will boost transparency and financial stability in HMOs. See how HMO officials are claiming to welcome changes that increase accountability in their activities on Capitol Report .
  • Texas Governor David Dewhurst has created a new open government committee to review transparency-related issues in state government, public information and open records. The committee will also help improve accountability in the legislative process, but journalist Mike Ward has his doubts. He notes that while the governor’s move is a step in the right direction, there has been history of the Senate holding meetings behind closed doors and this does not look like it will end soon. Read more on Postcards.
  • The New Hampshire House is carrying out executive sessions immediately after general sessions without giving the public a right to know what is going on.  Referencing the “Hughes” case -- where the legislature does not have to obey the Right-to-Know law -- Lucy Weber writes that the Speaker of the House is not observing the same Sunshine law he introduced in the first place. Weber calls on residents of the Granite State to not sit back and take it. See details on Blue Hampshire Blog.

Sunlight Weekly Round-up: Unfunded mandates and open government

According to the Congressional Budget Office, the Unfunded Mandates Reform Act of 1995 (UMRA) was set up to respond to concerns that the federal government was imposing enforceable duties on other levels of government without carefully considering the costs of these duties.  As a result, mandates such as the open meeting Act mandate that requires all meetings of the legislature body of a local agency to be open and public and all persons to be permitted to attend any meeting of the legislature body, can go unfunded if a state considers them costly. The debate now is whether an unfunded mandate means that it should be suspended.  Robert Wechsler does not think so. Here is why...

  • Public meetings in California are threatened after the legislature suspended funding for local government's compliance with open meetings laws this month. Robert Wechsler, the director of research at City Ethics, deconstructs the consequences of this suspension and explains the importance of unfunded mandates and how they affect the open meeting compliance.  He recommends that the state makes more requirements of local government to create stronger ethics programs and foster sustained funding. More on the City Ethics blog
  • When it comes to money in politics, David Morrison, Associate Director of Illinois Campaign for Political Reform does not mince words. He believes that campaign finance disclosure is crucial because it makes the public aware of possible conflict of interest where a donor may have vested interest in a political candidate. Take a look at how he criticizes Illinois’ long acceptance of political donations from corporations without full disclosure at the Illinois Campaign for Political Reform.
  • Open government might become part of North Carolina’s constitution. While “keeping a watchful eye on government and politics in the Cape Fear Region” Pat Gannon blogs that a sunshine amendment to a senate bill will make government and local meetings open to the public and give them access to public records. Read how State Sen. Thom Goolsby’s sponsored bill is  receiving a nod from the North Carolina Press Association on the Cape Fear Watchdogs.
  • A new bill sponsored by Governor Scott Walker is about to leave residents in Wisconsin without public transportation.  The SB 11 bill, which will affect collective bargaining for public employees will also lead to an end of the 47 million in federal mass transit that the state receives in aid. In her “My vacation day for transit and standing up for what I believe in”, Nikki V is seeking for a solution to the budget repair bill. Take a look at how she is making the call for legislatures to find a better answer on CurlyGirl.
  • Senator Tanya Schuitmaker has introduced a bill that will require Michigan to post online all government-related information including contracts and grants. Former state representative Jack Hoogendyk, now the director of Citizens’ Alliance for Life and Liberty, reviews transparency legislation in other states and notes that the cost of creating searchable websites has been the recurring concern even when it has been discovered that the actual cost is far less than what was predicted. More of his blog on Core Principles.

New York Congressman Under Ethics Investigation

Another New York Congressman is under investigation by the House Ethics Committee. According to the New York Post, the House Ethics Committee is investigating Rep. Gregory Meeks for failing to report his one of his wife's sources of income.

The lapses in the Queens Democrat's annual financial filings include his failure to reveal at least one of his wife's sources of income -- a teaching job at Queens College, The Post has learned.

Simone-Marie Meeks earned $2,857 in 2008 as an adjunct at the school, state records show.

Meeks' wife is also the principal of the Lipscomb Lord Group, which she set up in 1999 to do public relations, event planning and advocacy work. Meeks never disclosed the existence of the company.

Roll Call elaborates on previous ethics problems that Meeks has faced:

CREW requested that the Office of Congressional Ethics investigate whether a private loan Meeks received may have violated House rules. Members are allowed to accept private loans under certain conditions.

Meeks disclosed the $40,000 personal loan from businessman Ed Ahmad in his 2009 financial disclosure report. The Congressman reported the loan with a value of $50,000 to $100,000 on his disclosure form and revealed in an amendment that he first received the “interest-only personal loan” in 2007. He had not previously reported the funds, which he noted in another amendment to his financial disclosures in 2010 that he has repaid in full.

Pillows Could Cause Congressional Insomnia

In a public relations move, Sleepy’s -- a mattress company -- announced it will give pillows to freshmen Members of Congress who sleep in their offices. The gifts, however, could run afoul of House gift rules.

A Member of Congress “may accept a gift … that [he or she] believes to have a value of less than $50,” according to House Rule XXV. So, what is a good night’s sleep worth?

Sleepy's press release isn’t clear, but it links to a two-pack of "Harmony Jumbo Pillows," which retail for $39.99, but are available for the low low price of $31.99, plus tax. If these are indeed the pillows that will be delivered to our nation’s capitol, Members of Congress can rest easy so long a the pillows don’t come from a registered lobbyist or a private entity that retains or employs registered lobbyists. If Sleepy’s has a lobbyist -- and it appears they do not -- the pillows need to be returned or paid for. Otherwise, the gift appears fine.

However, were Sleepy’s to provide a more expensive pillow set, say the “Rapture Perfect Posture Memory Foam Pillow” (set of two) for $55.99 plus tax, or the “Tempur-Pedic Rhapsody Pillow,” a steal at $199.99 plus tax, the gifts would cause a political nightmare.

Despite rules, revolving door lobbyist was on House floor for swearing-in

The New Orleans Times-Picayune points out another possible ethics violation made during the opening day of the 112th Congress. Lobbyist Bob Livingston, a former member of Congress, was on the floor of the House for the swearing-in ceremony despite ethics rules forbidding former lawmakers who lobby from exercising their privilege of setting foot in the House chamber. Livingston apparently left the floor after being informed that he could be in violation of the rule.

[I]t turns out, Livingston, who now runs the Livingston Group lobbying firm, was on the floor in violation of an ethics rule, passed by the Republican House in 2006 in the wake of the scandal over lobbyist Jack Abramoff, that denies lawmakers-turned-lobbyists their lifetime floor (and gym) privileges, except on select ceremonial occasions.

"I was under the impression that opening day and the State of the Union were days when I, as a lobbyist, could indeed go on the floor," Livingston said. "When I was informed that I was mistaken, I left."

Rules that restrict lobbyists from setting foot into the House chamber are important, but may be difficult to enforce as there is no one in direct violation aside from the lobbyist and the officers who gave the lobbyist floor access.

Also, there is a provision to the rule that allows the Speaker to create rules that would provide for floor access during ceremonial or educational functions.

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