NEBRASKA ACCOUNTABILITY AND DISCLOSURE COMMISSION - …

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Transcript of NEBRASKA ACCOUNTABILITY AND DISCLOSURE COMMISSION - …

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NEBRASKA ACCOUNTABILITY AND DISCLOSURE COMMISSION

The Center for Media and Democracy ) Brendan Fischer ) Complainant )

) COMPLAINT Against ) ) Senator James Smith ) Respondent ) This complaint is made pursuant to Neb. Rev. St. §§ 49-1493(5), 49-1496(2), 49-1490. I, Brendan Fischer, allege that: Senator James Smith accepted a gift of travel expenses from the Government of Alberta, Canada in October 2012, roughly in the amount of $1466.67, and potentially other gifts, and failed to disclose the amount, donor name, and description or circumstances of these gifts in his 2012 annual Financial Interests Statement filed on April 1, 2013 as required under §49-1493(5) and 49-1496(2) of the Nebraska Political Accountability and Disclosure Act (NPADA); Sen. Smith may also have accepted impermissible gifts from TransCanada, a lobbying principal in Nebraska prohibited under Neb. Rev. Stat. §49-1490 from providing legislators with anything valued at more than $50 in any calendar month.

Sen. Smith Received Gifts of Travel In October of 2012, Sen. Smith, along with eight other legislative members of the American Legislative Exchange Council (ALEC) participated in an ALEC “Oil Sands Academy” which entailed flying to Alberta, Canada to meet with lobbyists for pipeline operator TransCanada and other corporate interests, and to tour oil extraction facilities operated by Shell Oil and Devon Energy. See Exhibit A (email from Sen. Smith); Exhibit B (ALEC blog post by Sen. Piscopo);1 Exhibit C (ALEC blog post by Sen. AJ Griffin)2. Upon arrival in Calgary, the participants visited TransCanada headquarters, the operator of the proposed Keystone XL Pipeline, see Exhibit B, and the corporation that has spent the most on lobbying in Nebraska over the past two years. See Exhibit D (2012 Common Cause Lobby Report). On the second day of the trip, the Alberta government chartered a plane for all legislators to fly two hours north of Calgary to view tar sands oil extraction facilities operated by

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 John Piscopo, Alberta Bound: Observations From the Canadian Oil Sands, AMERICANLEGISLATOR: A FORUM FOR LEGISLATIVE DEBATE BY THE AMERICAN LEGISLATIVE EXCHANGE COUNCIL (April 3, 2013), available at http://www.americanlegislator.org/alberta-bound-observations-from-the-canadian-oil-sands/ 2 AJ Griffin, Lessons Learned From Our Neighbors to the North, AMERICANLEGISLATOR: A FORUM FOR LEGISLATIVE DEBATE BY THE AMERICAN LEGISLATIVE EXCHANGE COUNCIL (May 7, 2013), available at http://www.americanlegislator.org/lessons-learned-from-our-neighbors-to-the-north/

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Shell Oil and Devon Energy. See Exhibit E (ALEC blog post by Senator Branan)3. Oil extracted from these facilities would likely be transported through TransCanada’s proposed Keystone XL pipeline. According to the Alberta government, the expenses paid for travel within Canada on this chartered plane amounted to $1466.77 per legislator. See Exhibit F (email from Alberta government). Evidence suggests that the Alberta government only covered a portion of these charter flight expenses; it is not known who else provided the funding. See Exhibit G.4 Corporate interests provided meals throughout the “Oil Sands Academy.” For example, Shell Oil sponsored the lunch on the Wednesday of the trip and the Canadian Association of Petroleum Producers hosted and sponsored the Wednesday night dinner. See Exhibit G. In an email sent to the Center for Media and Democracy on May 29, 2013, Sen. Smith affirmed that he did participate in the trip to Canada in October 2012. See Exhibit A. In the email, Senator Jim Smith stated: “I covered the costs of my air travel to Canada and my lodging while travel to the oil sands region was provided by the Government of Alberta and the Canadian Ministry of Energy.” Id. However, in September 2012, when ALEC invited legislators to participate in the “Oil Sands Academy,” it offered to pay for their lodging at the Westin Calgary and their airfare from the U.S. to Canada. See Exhibit H.5 The cost of lodging was $648.92 for two nights, according to an email ALEC sent to an Ohio legislator who participated in the “Academy.” See Exhibit I. A separate email apparently sent to all legislators attending the “Academy” lists Sen. Smith staying in the ALEC room block. See Exhibit J. ALEC may have raised the funds for the accommodations and airfare from corporate interests, including from at least one corporate lobbying principal in Nebraska.

According to an email from ALEC International Relations Task Force Director Karla Jones, TransCanada (which is a lobbying principal in Nebraska) and the American Fuel & Petrochemical Manufacturers were listed as “sponsors” of the trip. See Exhibit G. In a separate document where ALEC advertises corporate sponsorship opportunities, an ALEC “Academy” is described as "an intensive, two-day program for legislators that focus on a specific area of policy." See Exhibit K.

Sponsoring an ALEC “Academy” costs $80,000. Id. Presumably, TransCanada paid all or part of this sum to sponsor the ALEC “Oil Sands Academy” in October.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!3 Cliff Branan, International Trip Provides Education for the States, AMERICANLEGISLATOR: A FORUM FOR LEGISLATIVE DEBATE BY THE AMERICAN LEGISLATIVE EXCHANGE COUNCIL (March 27, 2013), available at http://www.americanlegislator.org/international-trip-provides-education-for-the-states/ 4 ALEC International Relations Task Force Director Karla Jones writes: “The government of Alberta sponsored a portion of the flights we took to the oil sands facilities.” 5 Email communications regarding Oil Sands ALEC Academy sponsors sent from ALEC’s Karla Jones to “Oil Sands Academy Participants”

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TransCanada May Have Provided Gifts in Excess of Statutory Limits, and Sen. Smith Did Not Disclose Gifts of Travel From the Government of Alberta

Lobbying principals are prohibited from providing “gifts” to legislators, defined as anything valued at more than $50 in any calendar month (with certain exceptions). Neb. Rev. Stat. §49-1490 (1-3). It is not clear whether Sen. Smith directly or indirectly received gifts from TransCanada by way of the lobbying principal “sponsoring” the ALEC Oil Sands Academy, which potentially involved expenditures of $80,000. The Nebraska Accountability and Disclosure Commission has previously held that when ALEC accepts funds from lobbyists or principals intended for the benefit of Nebraska legislators, ALEC “is acting on behalf of a lobbyist or principal.”6 Lobbying principals cannot evade the state ethics and lobbying laws by filtering gifts to legislators through ALEC; to do so would allow a principal to “accomplish indirectly that which could not be done directly.” Id.

Additionally, evidence indicates that Sen. Smith failed to disclose the gifts of travel he received from the Government of Alberta. Pursuant to Neb. Rev. St. § 49-1493(5) all members of the Nebraska legislature must file a statement of financial interests by April 1st of each year that they hold such office.7 The statement of financial interests should include a description of any gifts received during that year, the amount of the gifts, and the identity of the giver.8 Travel expenses and reimbursements for travel expenses qualify as gifts. See Neb. Rev. Stat. §49-1423;9 see also Tit. 4, Ch. 6, § 013.02C.10

In Sen. Smith’s Statement of Financial Interests for the year of 2012, however, he did not disclose the Alberta government’s gift of travel expenses for chartered plane travel while in Canada, nor did he disclose any other potential gifts received on the trip. See Exhibit L (Sen. Smith Statement of Financial Interests for 2012). In contrast, two legislators from Ohio who also participated in the “Academy” did disclose the exact amount of the trip paid for by the Alberta government in their 2012 financial disclosure statements. See Exhibit L (Ohio financial disclosure statements). In addition, these two Ohio !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6 Neb. Accountability and Disclosure Comm'n, Op. No. 157 (1995), available at http://nadc.nol.org/AdvisoryOpinions/OPINION%20157.htm.

7 See also, Nebraska Accountability and Disclosure Commission, Rules and Regulations, Tit. 4, Ch. 2, § 002.05, available at http://www.sos.ne.gov/rules-and-regs/regsearch/Rules/Accountability_and_Disclosure_Commission/Title-4/Chapter-02.pdf 8 Under §49-1496(2) the statement of financial interests must include the “name, address, occupation or nature of business of any person from whom a gift in the value of more than one hundred dollars was received, a description of the gift and the circumstances of the gift, and the monetary value category of the gift.” 9 Gifts are defined under §49-1423 as a “payment, subscription, advance, forbearance, rendering, or deposit of money, services, or anything of value, unless consideration of equal or greater value is given therefor” (with an exception for meals provided for immediate consumption). Out-of-state travel expenses or reimbursement for such expenses are things of value and do not fall under any statutory exceptions. 10 Available at http://nadc.nol.org/pdf/Rule6%2009.pdf. In its rules and regulations interpreting the Political Accountability and Disclosure Act, the Nebraska Accountability and Disclosure Commission has interpreted “gifts” to encompass travel.

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EXHIBIT INDEX

Exhibit A: May 29, 2013 Email from Senator Jim Smith to Center for Media and Democracy Research Director Nick Surgey Stating that Senator Smith attended the trip, and paid for his own travel to Canada and his lodging, and that the Alberta Government and the “Canadian Ministry of Energy” paid for his travel while in Canada. Exhibit B: April 3, 2013 blog post on ALEC website by Sen. John Piscopo of Connecticut Stating that nine ALEC member legislators and ALEC’s International Relations Task Force Director travelled to Calgary, Canada and met with TransCanada on the first day of the trip, then met with various other corporate groups involved in the oil sands pipeline project. Exhibit C: May 7, 2013 blog post on ALEC website by Senator AJ Griffin of Oklahoma Referring to the ALEC trip to Canada as the “Oil Sands Academy.” Exhibit D: 2012-2013 Common Cause Lobby Report for Nebraska Lobby Activities Listing TransCanada as spending $698,027 on lobbying in 2011-2012, more than any other lobbying principal. Exhibit E: March 27, 2013 blog post on ALEC website by Senator Cliff Branan of Oklahoma Stating that the group of ALEC legislators flew from Calgary to Fort McMurray to an oil extraction facility operated by Shell and learned about the oil extraction process from Devon Energy. Exhibit F: May 24-May 27, 2013 email correspondence between Nick Surgey and David Sands of the Alberta government Confirming that the Alberta government chartered a flight for the ALEC legislators, and the cost per legislator was estimated at $1466.67. Exhibit G: November 21, 2012 email from ALEC International and Federal Relations Task Force Director Karla Jones to Oil Sands Academy participants Listing corporate sponsors of the ALEC Academy trip, including TransCanada, and urging legislators to send thank you notes; also states that the “government of Alberta sponsored a portion of the flights we took to the oil sands facilities.” Exhibit H: September 28, 2012 invitation to Oil Sands Academy from ALEC International and Federal Relations Task Force Director Karla Jones Sent from ALEC’s Jones to Ohio Sen. John Adams stating “we have a budget that will allow for ten legislator participants … ALEC will provide round trip transportation between an airport near your home and Calgary [and] lodging for two nights in Calgary in a block at the Westin Calgary,” and providing an itinerary.

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Exhibit I: January 18-January 22, 2013 email correspondence between Ryan Crawford, staffer for Ohio Rep. John Adams, and ALEC International and Federal Relations Task Force Director Karla Jones Stating that ALEC paid $648.92 for Rep. Adams’ lodging in Canada, and $746.90 for Rep. Adams’ flight to Canada. Exhibit J: October 4, 2012 Email from Karla Jones to all participants of the Oil Sands Academy Including a spreadsheet for the “ALEC Room Block for October 16-18,” listing Sen. Jim Smith as a guest under the ALEC block. Exhibit K: “2013 Policy Programming Sponsorship Opportunities” Listing the cost to sponsor an ALEC “Academy” at $80,000 Exhibit L: 2012 Statement of Financial Interest for Sen. Jim Smith Item 11: Sources of Gifts of a Value of More than $100 Received Except Gifts from Relatives – does not list an amount from the Alberta Government for the travel expenses paid for the chartered flight within Canada or any amount that may have been paid by ALEC. Exhibit M: 2012 Financial Disclosures from Rep. Clifford Rosenberger and Rep. John Adams of Ohio On Page 9, Item 8, Rep. Rosenberger lists $1466.67 from the Government of the Canadian Province of Alberta and $1574.40 from ALEC as “Travel” payments or expenses incurred; on Page 9, Item 8, Rep. Adams lists $1466.67 from the Government of the Canadian Province of Alberta and $1395.82 from ALEC as “Travel” payments or expenses incurred; both list the receipt of “Meals, Food and Beverages” from ALEC on Page 10, Item 10.

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EXHIBIT A

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EXHIBIT B

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EXHIBIT C

Page 14: NEBRASKA ACCOUNTABILITY AND DISCLOSURE COMMISSION - …

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Page 15: NEBRASKA ACCOUNTABILITY AND DISCLOSURE COMMISSION - …

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EXHIBIT D

Page 17: NEBRASKA ACCOUNTABILITY AND DISCLOSURE COMMISSION - …

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EXHIBIT E

Page 26: NEBRASKA ACCOUNTABILITY AND DISCLOSURE COMMISSION - …

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EXHIBIT F

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Hi#Nick,#I#have#confirmed#that#on#the#occasion#of#this#oil#sands#site#visit,#a#previously#booked#Government#of#Alberta#aircraft#was#unavailable#at#the#time#ofdeparture#and#we#thus#chartered#a#flight.#The#flight#to#northern#Alberta#originated#and#ended#in#Calgary.#It#would#have#had#three#“legs”#–#Calgary#toFort#McMurray,#Fort#McMurray#to#Conklin,#Conklin#to#Calgary.#The#amount#noted#by#the#legislators#thus#reflects#our#perFperson#cost#of#that#charter#and#associated#costs#of#the#site#visit.#Elected#officials#and#mediaoften#do#ask#for#a#breakdown#of#costs#incurred#by#us#so#they#can#fulfill#their#reporting#or#ethical#requirements.##David#SandsCommunications#DirectorInternational#and#Intergovernmental#RelationsGovernment#of#Alberta780#422#2524780#619#7586######From: Nick Surgey [mailto:[email protected]] Sent: Monday, May 27, 2013 10:24 AMTo: David SandsCc: Nick SurgeySubject: Re: Alberta Government question David, I wanted to quickly check in about the query below. Were you able to work this out? With thanks, Nick On May 24, 2013, at 8:29 AM, Nick Surgey <[email protected]> wrote:

I apologize for the multiple emails. Rep. Cliff Rosenberger (OH) also reports receiving expenses from Alberta government amountingto $1466.67. I think this is probably the same amount as Adams- his handwriting is a little difficult to read whether it ends with a "7" or a"9". Your help in working this out is appreciated. Nick On May 24, 2013, at 8:24 AM, Nick Surgey <[email protected]> wrote:

David Are you certain that the ALEC trip was not paid for by the Alberta government? Can you provide me with the amount that you have expectedRep. John Adams from Ohio to have reported as being received from the Alberta Government? Canadian or US dollars is fine. I ask this sinceAdams reports having received expenses to the value of $1466.69 from the "Government of Canadian Province of Alberta" in 2012. Continued thanks,

David Sands <[email protected]>To: nickRE: Alberta Government question

May 27, 2013 1:12 PM

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EXHIBIT G

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EXHIBIT H

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EXHIBIT I

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EXHIBIT L

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EXHIBIT M

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