State Integrity Investigation

From left: Former Ill. House Rep. Kevin McCarthy, Illinois State Capitol in Springfield. Ballotpedia, Wikimedia Commons

Revolving door swings freely in America's statehouses

By Nicholas Kusnetz

On October 26, 2011, the Illinois legislature passed a bill that authorized construction of a multi-billion-dollar smart grid and reshaped how utility companies seek approval for raising electricity rates. Consumer groups opposed the measure, saying it was a handout to utilities.

But the final blow for opponents came three months later when former state Rep. Kevin McCarthy, who had pushed the bill through the legislature only to resign after winning its passage, registered his own lobbying firm and signed his first clients. Prominent among them: Commonwealth Edison, one of the state’s largest utilities.

“It’s hard to believe that there wasn’t a quid pro quo for this,” said Scott Musser, an Illinois lobbyist for AARP, which opposed the bill.

McCarthy declined to comment. And despite the potential conflict of interest, his move seems to have been in full compliance with state ethics laws. In Illinois and 14 other states, there aren’t any laws preventing legislators from resigning one day and registering as lobbyists the next, according to data compiled by the National Conference of State Legislatures.

Most other states impose “cooling off” periods of one or two years during which legislators or government officials are restricted from lobbying or taking certain private-sector jobs. But a review by the State Integrity Investigation found that in several of those states, including Florida, Indiana and Utah, to name a few, the rules are riddled with loopholes, narrowly written or loosely enforced.

State Integrity Investigation

Rhode Island Gov. Lincoln Chafee AP

IMPACT: Rhode Island to publish more state records online

By Nicholas Kusnetz

The state of Rhode Island will broaden access to government information through a new online portal under an initiative announced Thursday by Gov. Lincoln Chafee. Chafee said many documents will be available immediately and that the state will continue to add audits, contracts and other financial documents to the website over the next 18 months.

“The people of Rhode Island deserve more and better information about the operation and management of their government,” said Chafee in a statement. “I believe that greater openness and transparency will ultimately strengthen our citizens’ faith in their government, bolster our national reputation, and increase our economic competitiveness.”

The new “Transparency Portal” provides easy access to government financial data and documents. Users can search for contracts by bid number or vendor, sort through government expenditures or file a public records request, all on one site.

Chafee, an Independent, has promised in the past to improve transparency. In June, he signed a bill that broadened the state’s public records laws.

Some documents published on the new site had been accessible elsewhere, while others, such as contracts, had to be requested through open records laws.

“It seems to be as much about accessibility as it is about transparency,” said John Marion, executive director of Common Cause Rhode Island.

Sexual Assault on Campus

The hallway between the locker room and the field at Notre Dame stadium shows the team's famous "Play like a Champion Today" sign. AP

Notre Dame case highlights complexities of campus sexual assault investigations

By Kristen Lombardi

Notre Dame’s high-profile re-emergence among college football’s elite has focused new attention on the university’s long-standing claims that it does things “the right way” — that football players are treated like anyone else on campus, with no special favors.

The boasts of lofty moral standards have long struck other schools’ fans as a bit sanctimonious. But they are getting fresh scrutiny now, in part because the bright lights of college football’s biggest stage have brought renewed attention to a two-year-old case involving a Notre Dame player and chilling allegations of sexual assault.

In August 2010, 19-year-old freshman Lizzy Seeberg accused the athlete of sexually assaulting her in his dorm. She filed a report with campus police, which sat on it for two weeks before even interviewing him. By then, Seeberg had committed suicide. Administrators would later convene a closed-door campus disciplinary hearing—three months after Seeberg’s death became national news—in which the player was found “not responsible.” In the university's only direct comment on the case, Notre Dame's president, the Rev. John I. Jenkins, told the South Bend Tribune in December 2010 that university police had conducted a "thorough and judicious investigation that followed the facts..." He acknowledged, however, that the inquiry could have been conducted "more quickly, perhaps." The player, who has not been publicly identified, reportedly has never missed a game, nor presumably will he miss tonight’s national championship contest with Alabama’s Crimson Tide. Meanwhile, a small but vocal number of critics are asking pointed questions about how this case was handled, and wondering aloud whether Notre Dame’s righteous rhetoric is really a fiction.

State Integrity Investigation

Stanford's Stepfan Taylor takes the ball during the second half of the 2012 Fiesta Bowl. A scandal involving gifts from bowl officials to state legislators has yet to bring about changes in lobbying or disclosure laws. Matt York/AP

Arizona still waiting for Fiesta Bowl fixes

By Kathleen Ingley

The Fiesta Bowl game and its many related events have become a football extravaganza that kicks off the new year for the Phoenix area with national publicity and a hefty  economic boost.

But over the past three years, the Fiesta Bowl has also become the source of continuous embarrassment in the Valley of the Sun, for bowl officials, civic boosters and state legislators, as well. And it isn’t over.

The parade of bad news began in December 2009, when the Arizona Republic exposed the Fiesta Bowl’s scheme of urging employees to make campaign contributions and then illegally reimbursing them. In March 2011, a special investigative committee revealed that the bowl had showered elected officials, mostly legislators, with lavish gifts.

That May, the Fiesta Bowl was fined $1 million by the organization that runs the biggest bowls, and put on one-year probation by the National Collegiate Athletic Association. Fiesta Bowl CEO John Junker, who was fired, and five other bowl employees have pleaded guilty to involvement in the illegal reimbursements. A lobbyist pleaded guilty to disclosure violations over a trip by legislators.

Now, as the 2013 state legislative session approaches, many Arizonans believe the Legislature has not one Fiesta Bowl scandal, but two.

The first is the tale of freebies: tickets to high-profile football games and bowl-paid jaunts around the country that dozens of legislators took from at least 2003 to 2010, often with family members in tow. The second is whether lawmakers intend to do anything about the behavior that was uncovered, or just carry on as if nothing ever happened.

Consumer Finance

Payday lender turned racecar rookie, Scott Tucker Level 5 Motorsports/Flickr

Payday lenders agree to stop 'deceptive and illegal' practices

By David Heath

Controversial lenders that claim to be owned by Indian tribes and offer payday loans over the Internet have agreed to stop practices that federal authorities say deceive borrowers and violate federal laws.

The agreement, filed in federal court, could save borrowers hundreds of dollars on each payday loan.

The Federal Trade Commission last year sued an Overland Park, Kan., company, AMG Services, to recover millions of dollars in revenues, alleging that borrowers were illegally deceived. The business was founded and is still managed by Scott Tucker, best known as an endurance race-car driver who recently won the Baltimore Grand Prix.

The Center for Public Integrity first exposed Tucker’s business practices in an investigation done with CBS News.

The case awaits trial. But the FTC argued that AMG Services was continuing to mislead thousands of new borrowers. Tucker and the representatives from the Indian tribes last month agreed to change the practices that the FTC said were illegal.

Borrowers previously had to give the lenders direct access to their bank accounts and have payments automatically withdraw from their checking account. But instead of a single payoff, the lenders would withdraw interest-only payments for months.

By drawing out the loan payments out, a $300 loan could end up costing the borrower nearly $1,000. The FTC said this was not properly disclosed under the Truth-in-Lending Act.

With the agreement filed in a federal court in Nevada, the lenders will no longer require access to a borrower’s bank account and the loans will be paid off in one payment. The lenders also agreed not to tell borrowers that they could go to jail or be sued if they didn’t pay the loan back.

Accountability

In 2010, Massachusetts gave $6 million in tax breaks to Smith & Wesson, which announced it was moving a hunting rifle division to the state from New Hampshire. AP

Gun manufacturers got more than $19 million in state subsidies

Taxpayers across the country are subsidizing the manufacturers of assault rifles used in multiple mass killings, including the massacre of 20 children and six adults at an elementary school in Newtown, Conn. last month.

Global Muckraking

Anonymous buyers, using tax shelters and hiding behind offshore secrecy, are taking over more and more blocks of luxury housing in the UK, particularly in London. AP

Best of 2012: International journalism

By The Center for Public Integrity

ICIJ Member Stories

The year in projects from the International Consortium of Investigative Journalists

By The Center for Public Integrity

In 2012, ICIJ explored the developing black market for coltan, a mineral used in an array of electronic devices. Reporters in six countries combed government and court records and interviewed mining experts and brokers. The reporters also followed miners as they prospected for coltan in South America’s Amazon, in the border between Venezuela and Colombia, where they face cross-border smugglers and must deal with violent drug traffickers and paramilitaries.

Miners weigh the stones with their hands to recognize coltan. The mineral is almost black and weighs more than a regular stone.

Joseph Poliszuk/ICIJ

The trade in human body parts has flourished even as concerns grow about how tissues are obtained and how well grieving families and transplant patients are informed about the realities and risks of the business.

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After years of intensive fishing, jack mackerel stocks in the southern Pacific have declined dramatically. Some experts say the only way to save the fishery is to impose a total ban for five years.

Periódico El Ciudadano

Anonymous buyers, using tax shelters and hiding behind offshore secrecy, are taking over more and more blocks of luxury housing in the UK, particularly in London.

AP

Accountability

The year in accountability journalism

By The Center for Public Integrity

In 2012, the Center for Public Integrity's State Integrity project graded the openess and accountability of all 50 state governments, leading many to take up reform measures. The investigation found that state officials often make lofty promises when it comes to ethics and accountability, but these efforts frequently fall short of providing any real transparency or legitimate hope of rooting out corruption. The reporting made a difference.

How accountable is your state? Read the State Integrity Investigation, an unprecedented, data-driven analysis of transparency and accountability in all 50 state governments.

David Zalubowski/AP

Walmart trailers parked outside the Schneider Logistics warehouse in Mira Loma, Calif. Lawyers alleging wage theft from mostly immigrant Latino contract workers at the Southern California warehouse complex took steps to add Walmart as a defendant in an ongoing federal lawsuit.

Adithya Sambamurthy/Center For Investigative Reporting

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As safety instructor Fred Mattera looks on, a fisherman jumps into the water in Narragansett, R.I., during a safety drill this month. The immersion training is intended to help curb casualties in the deadliest vocation in the United States, an industry beset by a high death rate and fragile federal net of protection.

Jesse Costa/WBUR

UCLA chemistry professor Patrick Harran and the UC Board of Regents face felony charges for the death of lab worker Sheri Sangji, a landmark worker safety case.

Adithya Sambamurthy/CIR

Elisa Xitco, 6, the daughter of U.S. citizen Chris Xitco, stands behind the iron gate protecting her home in Rosarito, Mexico, where she lives with her Mexican mother. Her mother has been barred from entering the U.S. at least until 2018  due to legislation that imposes harsh punishments on illegal immigrants who apply for legal status based on marriage to a U.S. citizen or some other tie.

Susan Ferriss

Students protest in Los Angeles against school police citations issued heavily at middle schools, low-income schools. 

Vanessa Romo/KPCC.org

Accountability

President Barack Obama, accompanied by House Speaker John Boehner of Ohio, speaks to reporters at the White House Nov. 16 as he hosted a meeting of the bipartisan, bicameral leadership of Congress to discuss the deficit and economy in Washington.  Carolyn Kaster/AP

FACT CHECK: Facing facts on fiscal cliff

By FactCheck.Org

The U.S. faces the possibility of another recession — the third in 11 years — if President Obama and Congress cannot find a way to avoid the so-called fiscal cliff. The one-two combination of massive tax increases and spending cuts scheduled to take effect, beginning Jan. 1, would push the unemployment rate back above 9 percent, according to the Congressional Budget Office.

There’s a growing consensus in Washington that some combination of spending cuts and increased revenues is needed to reduce annual deficits and slow the federal debt — without going over the fiscal cliff. The disagreement is over the details, particularly over how and how much to increase tax revenues and where to cut spending.

Some Republicans, including House Speaker John Boehner, say the president’s tax proposals would “destroy nearly 700,000 jobs,” which is an exaggeration. Many Democrats would prefer not to cut entitlement programs as part of the negotiations, even though the three largest entitlement programs — Medicare, Medicaid and Social Security — would consume 55 percent of all federal spending by 2022, compared with 43 percent in 2011, according to the CBO.

We take no position on what Congress should do. But we can offer some factual context to help understand the scope of what the CBO calls the nation’s “fundamental budgetary challenges.”

Some facts to consider:

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