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GOOD MORNING, MASSACHUSETTS. Happy Halloween!
TRAHAN'S CAMPAIGN CASH CONUNDRUM — Lori Trahan has a problem that just won't seem to go away. And no, it's not Dan Koh.
For months, Trahan has faced questions about where she got a $300,000 loan she used in the final stretch of her congressional campaign last year. Trahan sought to clear up confusion about her campaign finances Wednesday with an email blast to supporters and a lengthy post on Medium.
Trahan acknowledged the way she loaned money to her 2018 congressional campaign constituted what she calls a "gray area" in campaign finance law, though at least one campaign finance expert disagrees that the law is unclear.
Trahan says she drew the money from a joint account she shares with her husband, and cited several similar cases in which the Federal Election Commission backed up her position. Under campaign finance law, spouses are subject to the same $2,700 maximum contribution to a candidate as any other individual. But before Trahan and her husband were married, they entered into a premarital agreement that stated their incomes would be considered marital property that each had an equal right to manage and use.
"Under the agreement and state law , the funds used by Congresswoman Trahan to loan money to her campaign were her 'personal funds' and were eligible for use in the campaign," said Jonathan Berkon, a partner at Perkins Coie, the law firm Trahan uses.
"The First Amendment guarantees a candidate's right to make unlimited contributions from her 'personal funds.' The Supreme Court has repeatedly affirmed this right. And in cases involving the likes of Jane Fonda and Bob Dole, the FEC has accordingly allowed candidates to use funds held in their spouse's name for their own campaigns, as long as they had the right to manage and dispose of the funds under state law," Berkon said in a statement.
Several months ago, Trahan had denied that the money came from her husband, and suggested the accusation the money did not belong to her stemmed from her being a woman.
"This notion that a woman can't come from a public school system in the city of Lowell and start her own business and have a successful career is exactly needs to be debunked in this country," Trahan said in April, according to an NECN report.
Now, Trahan has shifted her message slightly, saying the funds came from a joint account. The clarification comes as her former opponent considers running against her, and has made her campaign finances a central point of his criticism. "I never expected that a former opponent would allege that the business I worked so hard to build was some kind of elaborate plot to fund my congressional bid," Trahan wrote yesterday.
It is true that Dan Koh is waiting in the wings, considering a rematch this cycle, and needling Trahan on her record online and in the press. "It is clear today that our member of Congress broke those laws during her campaign and then tried to hide it," Koh said in a statement on Wednesday.
But whether Koh runs against Trahan or not, questions about her campaign finances will not fully go away until the Federal Election Commission handles complaints lodged against her.
Several complaints against Trahan have been pending before the FEC and the Office of Congressional Ethics for months. The catch: the FEC does not have enough members to perform basic functions like hold meetings, or decide whether to toss or investigate complaints. That means complaints filed against Trahan remain in limbo. In the meantime, Trahan has racked up $186,000 in legal bills this year.
"While I was hoping that the Federal Election Commission would adjudicate a politically motivated complaint that was lodged against my 2018 campaign, it's clear to me that won't happen any time soon. President Trump has refused to nominate commissioners, and so the FEC has ground to a stand-still," Trahan wrote on Wednesday.
Have a tip, story, suggestion, birthday, anniversary, new job, or any other nugget for the Playbook? Get in touch: smurray@politico.com.
TODAY — Lt. Gov. Karyn Polito makes an announcement in Lowell, and heads to Worcester to attend a groundbreaking for the Kelley Square improvement project and announce the 2019 Cybersecurity Awareness Grant Award recipients. Boston Mayor Marty Walsh and Boston Public Schools Superintendent Brenda Cassellius announce the winners of the School on the Move prize with EdVestors.
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 | DATELINE BEACON HILL |
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- "DeLeo-Kaufman tale pulls back curtain on Beacon Hill ways," by Michael Jonas, CommonWealth Magazine: "AGAINST THE BACKDROP of the usual State House ways, where lawmakers rise to voice opposition to an amendment offered by "the gentleman from Boston," or part ways with the view of their "good friend" from this district or that one, a public disagreement that aired this week came in jarringly raw terms. It started when former state rep Jay Kaufman, in a conversation on The Codcast, said he grudgingly voted for a 2013 transportation tax bill because House Speaker Robert DeLeo told him he'd lose the chairmanship of the Revenue Committee if he didn't."
- "Massachusetts RMV says backlog of 'serious offenses' has been cleared," by Chris Lisinski, State House News Service: "A violation-processing department within the Registry of Motor Vehicles still has about 12,000 work items requiring manual review, some of which may warrant license suspensions. But staff have cleared out every "serious offense" from the backlog, officials said Wednesday. After a fatal crash and an ensuing scandal this summer revealed a backlog of missed violations at the RMV, staff have been working to issue new suspensions and update work processes to prevent a similar issue in the future."
- "State puts Hurley building in downtown Boston on the market," by Jon Chesto, Boston Globe: "Boston's hot real estate market has prompted a number of developers to tear down and build up. Now the Baker administration wants a piece of the action. The administration on Wednesday unveiled plans to redevelop the state-owned Charles F. Hurley Building, at the edge of the old West End and Government Center, to open up a prime 3.25-acre site on the corner of Staniford and Cambridge streets. The deal could, at a minimum, fetch the state tens of millions of dollars."
- "ROE Act Supporters, Opponents Active on Hill," by Chris Van Buskirk, State House News Service: "ROE Act opponents gathered Wednesday to rally against legislation that would remove obstacles and expand access to abortion and women's reproductive health. Billerica Republican Rep. Marc Lombardo, Renew Massachusetts Coalition, and Mass. Citizens for Life and the Mass hosted the third annual "celebration of life" to update the public and share information about pregnancy centers in the state."
- "Massachusetts reports 2nd vaping-related death," The Salem News: "Massachusetts health officials say a second state resident has died from a vaping-related lung illness. The Department of Public Health on Wednesday said the resident, a woman in her 40s from Middlesex County, died of a vaping-associated lung injury. The department said she vaped nicotine."
- "Reps. Sabadosa, Robinson, and Gouveia Say Beacon Hill Stifles New Voices," WGBH News. Link.
- RELATED: "Speaker Robert DeLeo's Statement To 'Greater Boston' On Its Segment With Three Representatives." Link.
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| FROM THE HUB |
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- "Convenience stores: Don't use vaping crisis as excuse to ban menthol cigarettes," by Shira Schoenberg, Springfield Republican: "Don't use the vaping health crisis as an excuse to ban products that aren't causing the problem. That is the message from convenience store owners, who held a rally Wednesday at Boston City Hall to fight back against attempts in Boston and statewide to further regulate or ban flavored tobacco products. "Do we want this in the regulated environment that exists today with a 95% compliance rate (with federal law on underage sales), or do we want it sold on the illicit black market?" said Jonathan Shaer, executive director of the New England Convenience Store and Energy Marketers Association."
- "Massachusetts gets $1.5 million federal grant to address human trafficking," by Shira Schoenberg, Springfield Republican: "Massachusetts has received a $1.5 million grant from the U.S. Department of Justice to address human trafficking and commercial sexual exploitation. The grant will be used partially to establish new units within the Worcester and Hampden district attorneys' offices to investigate and prosecute cases of human trafficking involving children and youth in areas identified as high-risk."
- MEANWHILE IN NEW HAMPSHIRE: "DraftKings primed to run New Hampshire's sports betting operation," by Michael Silverman, Boston Globe: "Boston-based DraftKings' fast-growing sports wagering operation is primed to move front and center into New Hampshire once sports betting begins there by the beginning of next year. The New Hampshire Lottery, which will oversee sports betting under its Division of Sports Wagering, on Tuesday announced scoring summaries of private entities to take bets in the Granite State, which passed a sports betting bill in July."
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| PRIMARY SOURCES |
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- "State Rep. Lori Ehrlich Endorses Ed Markey for United States Senate," from the Markey campaign: "State Rep. Lori Ehrlich (D-Marblehead) has endorsed Ed Markey in his bid for re-election to the United States Senate. Ehrlich represents the 8th Essex District, which includes Swampscott, Marblehead, and Wards 3 and 4 in Precinct 4 in Lynn. "Senator Ed Markey has never shied away from speaking truth to power while others stand silent," said Ehrlich."
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| ON THE STUMP |
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- FIRST IN PLAYBOOK: "STATE SENATOR NICK COLLINS ANNOUNCES ENDORSEMENT OF JULIA MEJIA FOR BOSTON CITY COUNCIL AT-LARGE," from the Mejia campaign: "State Senator Nick Collins, who represents the First Suffolk District and which includes the neighborhoods of South Boston, Dorchester, Mattapan and parts of Hyde Park, announced his endorsement and support among Mejia supporters at a GOTV event held in Dorcherster on Tuesday evening. "Julia's organizing background and passion for community advocacy make her a strong candidate for the Boston City Council," said State Senator Collins."
- "Michael Flaherty Proud to Announce Endorsements From Mix of Elected Officials, Labor Unions, Progressive Organizations, and The Boston Globe," from the Flaherty campaign: "Boston City Councilor At-Large Michael Flaherty is proud to announce endorsements from a broad group of supporters including 35 Unions, Planned Parenthood, The Environmental League of Massachusetts, The Boston Globe, and 22 elected officials including Mayor Walsh, Suffolk County Sheriff Tompkins, Congressman Steven Lynch, a number of his colleagues on the City Council, and several members of the Boston delegation at the State House. Flaherty says: 'Those endorsing me have a wide range of backgrounds and priorities, but where they can all agree is that Michael Flaherty is the right choice for Boston.'"
- "In District 5, the race for City Council is a microcosm of the divide over establishment politics," by Milton J. Valencia, Boston Globe: "They are both lifelong residents of Hyde Park and want to serve Boston on the City Council. Both are connected to a political establishment — but starkly different ones. Ricardo Arroyo is one of five children born to Puerto Rican parents. His father, Felix D. Arroyo, was a city councilor. His older brother, Felix G. Arroyo, was a city councilor, too. And now he's running for the council's District 5 seat — which includes Hyde Park, Roslindale, and Mattapan — hoping to bring change to the systemic racial and economic inequities he's seen in his work as a public defender, tending to some of society's most in need."
- "Why do you think it's important to vote in the Nov. 5 City Council election?" Bay State Banner. Link.
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| DAY IN COURT |
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- "SJC Chief Justice Ralph Gants endorses right to a lawyer for tenants and landlords in eviction cases," by Shira Schoenberg, Springfield Republican: "Supreme Judicial Court Chief Justice Ralph Gants on Wednesday endorsed a bill pending before the state Legislature that would provide legal representation to indigent parties in eviction proceedings. The difficulties of self-represented litigants were highlighted earlier this year in a case brought by a group of Worcester tenants who alleged that the Worcester Housing Court treated them improperly."
- "Judge Douglas Wilkins upholds Baker administration's emergency regulations on vape ban," by Tanner Stening, MassLive.com: "A Superior Court judge denied motions from the Vapor Technology Association and a group of medical marijuana advocates asking for further justification of Gov. Charlie Baker's emergency regulations filed on Monday to support the temporary vape ban."
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| WARREN REPORT |
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- "Payday lenders discussed raising money for Trump's campaign to fend off regulation, audio reveals," by Renae Merle, Washington Post: "Billing himself as one of President Trump's top fundraisers, Michael Hodges told fellow payday lenders recently that industry contributions to the president's reelection campaign could be leveraged to gain access to the Trump administration. Rep. Maxine Waters (D-Calif.), the chair of the Financial Services Committee, is an industry "hater," and Sen. Elizabeth Warren (D-Mass.) would pose a big threat if elected president, Hodges and three other industry insiders said during the talk."
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| TRUMPACHUSETTS |
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- "Ed Markey, Elizabeth Warren and Democratic senators say President Donald Trump's DNA-collection proposal 'vilifies' immigrants," by Benjamin Kail, MassLive.com: "Eleven Democratic U.S. Senators called out the Trump administration on Wednesday for its proposal to force DNA collection from migrants, saying the plan was "unnecessary, unjustified and invasive." In a letter to the Departments of Justice and Homeland Security, the senators said President Donald Trump's plan would place in the hands of the federal government "massive amounts of biometric data taken without consent from hundreds of thousands of migrants who have done nothing other than seek a better life.'"
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| DATELINE D.C. |
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- "Pressley, immigration services chief tangle at hearing," by Sarah Betancourt, CommonWealth Magazine: "THE ACTING HEAD of the nation's immigration services agency, testifying before Congress under subpoena, said he and he alone made the decision to end medical deferred action, which allowed critically ill immigrants into the country for specialized medical care. "I made this decision, alone," said Ken Cuccinelli, the acting head of the US Citizenship and Immigration Services. He was responding to questions from Massachusetts Congresswoman Ayanna Pressley, who asked if President Trump or his political advisor Stephen Miller played any role."
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| ABOVE THE FOLD |
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— Herald: "MENTAL BLOCK," "TWITTER'S CHARACTER FLAW," — Globe: "A new age for WITCHES," "Democrats ask Bolton to testify on Ukraine." |
| EYE ON 2020 |
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- "Pete Buttigieg Distances Himself From Sanders, Warren And Biden At Boston Fundraiser," by Tori Bedford, WGBH News: "Democratic presidential candidate Pete Buttigieg made an effort to set himself apart from the three leading front-runners in the 2020 race at a fundraiser Tuesday night in Downtown Boston. "If you want the furthest-left-most candidate you can get, you've got a clear choice, and if you want the candidate with the most years in Washington under their belt, you've got a clear choice," Buttigieg told reporters after a "grassroots" fundraising event at the Emerson Colonial Theatre."
EXCERPT:
Candidates Bernie Sanders, Elizabeth Warren and Joe Biden continue to be at the top of the polls in New Hampshire, according to a CNN/University of New Hampshire poll released Tuesday. Sanders is leading at 21 percent, followed by Warren at 18 percent, Biden at 15 percent, and Buttigieg in fourth place at 10 percent.
The 37-year-old mayor of South Bend, Indiana also addressed his attempts to gain traction among Black voters, a demographic where he has struggled. Buttigieg polled at 3 percent overall and one percent among Black voters in South Carolina, according to a Monmouth University poll from earlier this week. South Carolina is a decisive state for Black voters and the fourth state to vote in the Democratic primary.
Buttigieg’s issues with courting the Black vote were illustrated by a leaked internal memo last week, revealing feedback from a focus group claiming that some black voters see Buttigieg’s sexuality as “a barrier… particularly for men who seemed deeply uncomfortable even discussing it.”
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| FROM THE 413 |
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- "Holyoke City Clerk again calls for replacing aging ballot machines," by Dennis Hohenberger, MassLive.com: "As the Nov. 5 municipal elections near, City Clerk Brenna McGee is again calling for the city to replace its aging voting machines. On Wednesday morning, McGee and Assistant City Clerk Irma Cruz tested the 16 AccuVote machines in the City Council chambers, a state requirement before any election. The machines, which scan ballots at polling centers across the city, are 25 years old — or older — and are prone to breakdowns and malfunctions."
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| THE LOCAL ANGLE |
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- "Worcester funeral director Peter Stefan, known for burying the poor, has license suspended by the state, citing 'imminent danger,'" by Aviva Luttrell, MassLive.com: "Worcester funeral director Peter Stefan, known for burying the poor and unwanted, has had his license suspended by the state. When reached by phone Wednesday morning, Stefan said a state inspector visited his funeral home — Graham Putnam & Mahoney — on Friday afternoon and suspended his license, citing an "imminent danger." But Stefan, who has been taking abandoned bodies for years, denied the allegations, calling the situation a setup by the state."
- "Local Armenians praise U.S. House resolution recognizing genocide," by Monica Sager, Telegram & Gazette: "From 1915 to 1923, more than 1.5 million Armenians were killed by Turkish regimes. Since 1891, Worcester has been home to the first Armenian church in the United States and has hosted a large Armenian American community. Tuesday, U.S. House of Representatives passed a resolution recognizing and memorializing the Armenian genocide, the first genocide of the 20th century."
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| SPOOKY SEASON |
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- 'Looking for a little magic': Millennials and Gen Z embrace witchy, New Age spiritualism," by Deanna Pan, Boston Globe: "Witches are having a moment. "Sabrina the Teenage Witch" is back on the small screen in the form of a darker, sexier Netflix series. A reboot of the witchy cult film "The Craft" is in the works. The phrase "witch hunt" hasn't enjoyed this much ubiquity — thanks to President Trump and his allies — since, well, probably the 1690s. "
FOR YOUR RADAR - I'm sitting down with Rep. Seth Moulton and former New York Rep. Chris Gibson at Northeastern University next week to talk about their military service ahead of Veterans Day. I hope you'll join us on Monday, Nov. 4 at 3:30 p.m. RSVP.
SPOTTED: Former U.S. Ambassador to the United Nations Susan Rice keynoting the WorldBoston annual consuls general reception, chaired by Patrick Bench of Benchmark Strategies. The event was held at the Federal Reserve Bank of Boston on Wednesday night.
HAPPY BIRTHDAY - to Boston Globe columnist Yvonne Abraham, POLITICO's own Michael Kruse, and Alexandra Pigeon
DID THE HOME TEAM WIN? Yes! The Celtics beat the Bucks 116-105.
FOR YOUR COMMUTE: The Headless Horse Race - On this week's Horse Race podcast, hosts Stephanie Murray and Steve Koczela get in the Halloween spirit and talk all things #mapoli. Congressional candidate Jake Auchincloss discusses his bid to replace Rep. Joe Kennedy III, and CommonWealth Magazine's Andy Metzger talks about House Speaker Robert DeLeo's plans to run for speaker again next year. Subscribe and listen on iTunes and Sound Cloud.
Want to make an impact? POLITICO Massachusetts has a variety of solutions available for partners looking to reach and activate the most influential people in the Bay State. Have a petition you want signed? A cause you're promoting? Seeking to increase brand awareness among this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com.
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