Lobbyists aid campaigns of both governor hopefuls

The attacks on Fred DuVal’s time as a lobbyist began a few hours after the primary-election celebrations ended.

The Republican Governors Association’s TV ad, which began airing the morning of Aug. 27, twice referred to the Democratic nominee for governor as “lobbyist Fred DuVal.”

Other allies of Republican nominee Doug Ducey sought to hang the label on DuVal, including Ducey’s campaign staff, which tweeted about his “dark lobbyist past,” and outside groups that have so far spent $3.4 million to attack DuVal, much of it on ads echoing the lobbying line of attack.

“Fred DuVal made a cushy career as a slick lobbyist,” says an ominous voice in one ad funded by political-action committee RGA Arizona. “Now he’s lobbying you to elect him governor.”

What the ads don’t say is that both DuVal and Ducey have relied heavily on the state’s lobbying corps for advice and to finance

their campaigns. Ducey, who has benefited most from this line of attack on DuVal, also counts lobbyists among his key supporters and advisers — including former U.S. Sen. Jon Kyl, who defends the occupation, calling it an essential part of the democratic process.

Combined, the candidates have raked in at least $435,000 from donors who have registered as lobbyists and many of whom hope to have access to the next governor and his administration.

The money began pouring in last year, during the crucial early months of the campaigns, with lobbyists providing at least $80,000 in seed money for DuVal’s campaign and $70,000 for Ducey’s bid, an Arizona Republic analysis of lobbyist data and campaign-finance figures from the Secretary of State’s Office found.

To date, DuVal has accepted at least $250,000 from lobbyists or onetime lobbyists while Ducey has taken at least $185,000, the analysis found. The Republic looked at donations by individuals who had registered as lobbyists since the mid-1990s. (See accompanying article for more detail on how The Republic identified lobbyists.)

As a group, lobbyists have almost always been among the top political spenders in elections here and nationally, political experts say. Their business relies on their ability to influence elected officials and their staffers on behalf of the interests they represent. So it’s no surprise so many would donate large sums of money, host fundraisers for the candidates and have seats at the candidates’ campaign tables.

It’s disingenuous — even hypocritical, some say — for one candidate to attack the other when he, too, is benefiting from lobbyists.

“Welcome to politics,” said Larry Sabato, director of the University of Virginia’s Center for Politics. “Lobbyists are premier players on both sides, and these lobbyists represent big interests that have large stakes in the outcome of the election — far more than average people in a lot of cases. They do what comes naturally: They try to influence the results.”

Russell Smoldon, who has lobbied for nearly three decades, wrote checks early in the campaign to DuVal, Ducey and GOP primary gubernatorial candidates Christine Jones and Ken Bennett. This election cycle, he estimates he’s donated nearly $30,000 to statewide and federal candidates. And some aren’t even up for re-election.

Smoldon said of his occupation: “I don’t think we’re bad. I think we’re good people.

“The fact of the matter is, I have never had this many requests in all the years I’ve been doing this” from statewide and federal candidates, he said.

“All I ask for is the ability to get a phone call returned or a meeting set up. I just want to be able to know they’re going to take the phone call,” Smoldon said. “I’m not afraid of doing the work to make my case. All I want is the ability to have access. That’s all I’ve asked for from many of them.”

Attacks dismissed

DuVal was an aide to Gov. Bruce Babbitt in the 1980s. He parlayed that into a long career in government and the private sector, moving through the revolving door of politics and lobbying.

He has worked with two lobbying firms, an international public-relations firm and his own consulting firm, which he ran from 2002 to 2012. As a member of the Board of Regents, which sets tuition and policies for the three state universities, he lobbied lawmakers.

DuVal’s lobbying included working with the town of Eloy to petition lawmakers to fund an amusement park that was never built; working with the city of Tucson to keep spring-training games there; and working with Orange County, Calif., to persuade federal officials to transfer control of a closed Marine base to the county for use as an airport.

Ducey supporters have used DuVal’s resume to brand him as an influence peddler who would put “special interests” before the public’s interest.

The state GOP party and Ducey’s campaign have suggested DuVal is linked to the blood-diamond trade and the Saddam Hussein regime. The accusations are based on the client list of Hill & Knowlton Strategies, a PR firm where DuVal worked but did not handle the controversial clients, and newspaper articles about a going-away party that Hussein’s Washington, D.C., lobbyist hosted for DuVal when DuVal left his post in the Clinton administration.

“LobbyistFreddyD” made an appearance on Twitter, describing itself as a parody of “a liberal lobbyist who parties with Saddam Hussein’s consultant and won’t release his secret list of clients.”

Republicans repeatedly issued e-mails calling on DuVal to identify his clients, a line of attack that has befuddled DuVal and his campaign. His clients, they said, are a matter of public record or have been disclosed by the campaign.

“Fred has about as much responsibility for clients of Hill & Knowlton as Doug (Ducey) does of his mobbed-up uncles,” said DuVal campaign consultant Rodd McLeod, referring to a Phoenix New Times story tracing the organized-crime ties of some of Ducey’s relatives in Ohio. “Fred is responsible for talking about the work that he did, not work that other people did.”

DuVal said he has been transparent about his lobbying work.

“They have indicated that I’ve lobbied people I’ve never heard of and don’t know anything about, so it lacks some accuracy,” DuVal said. “My life has been about being hired to get big things done, to move things through the public process.”

In September, following weeks of attacks, DuVal tried to distance himself from his lobbying career, telling a reporter: “Let me put this issue to rest: I’m not ever lobbying again.”

DuVal says Ducey and his campaign are being hypocritical. They point to Ducey’s ties to lobbyists or onetime lobbyists, including Kyl, U.S. Rep. Matt Salmon, former Gov. Fife Symington, former U.S. Rep. John Shadegg and Center for Arizona Policy President Cathi Herrod.

On the evening of Sept. 18, there was a reception for Ducey at the Sanctuary Camelback Mountain in Paradise Valley. Attendees were asked to wear business attire and consider donating the maximum generalelection contribution of $2,000 per person. The minimum suggested contribution was $500 per person.

Forty lobbyists and their employees headlined the event, according to an invitation.

“That was a pretty public advertisement of Doug’s coziness with insiders at the state Capitol,” DuVal said.

Ducey said it’s “perfectly acceptable” to highlight DuVal’s insider status. “A political insider is his only real experience, it’s his calling card for the governor’s office,” Ducey said.

Asked if it’s all right to have support from lobbyists, Ducey said, “There’s a big difference between running for office as a lobbyist and accepting donations from lobbyists.”

Melissa DeLaney, Ducey’s spokeswoman, said the difference is lobbyists’ campaign contributions are disclosed but DuVal’s “lobbying fees have not been disclosed because he refuses to list the clients for whom he lobbied but never registered.”

McLeod said DeLaney’s accusation is untrue. She’s “deliberately trying to muddy the water, but that’s just how Ducey op- erates,” he said. He pointed out that Ducey refuses to disclose details of a dispute over the sale of Cold Stone Creamery.

As state treasurer, one of Ducey’s top employees is registered as a lobbyist. Ducey said he did not employ lobbyists while CEO of Cold Stone.

Began flowing in 2013

Money from individuals who have registered as lobbyists started flowing into the candidates’ coffers beginning in 2013, records show.

Arizona defines a lobbyist as someone who attempts to influence passage or defeat of legislation, communicates directly with a legislator, attempts to influence rule-making by communicating directly with state employees, and, in some cases, those who attempt to influence procurement of materials, services or construction by a state agency.

Lobbyists are required to register with the Secretary of State’s Office before they start trying to influence officials.

DuVal’s first contributions from lobbyists arrived on Feb. 27, 2013, from public-relations consultant Karen Kruse, from Schaller Anderson co-founder Joseph Anderson the following day, and from lawyer Ernest Calderón on March 1.

Ducey’s first donations from lobbyists came on Sept. 17, 2013, from Tucson energy executive Paul Bonavia and attorney-lobbyist couple Mark and Wendy Briggs and PR-attorney couple Jason and Jordan Rose.

Through mid-October, about 11 percent of DuVal’s $2.3 million in contributions from individuals came from those who have registered as lobbyists, while more than 6.5 percent of Ducey’s $2.8 million in donations from individuals was from lobbyists.

In all, Ducey has raised nearly $6 million, including $3 million of his own money, while DuVal has raised nearly $2.7 million, according to campaignfinance reports.

Lobbyist Stuart Goodman gave to both candidates. His contributions are just one more “occupational hazard,” he said. His clients’ philosophies meshed with the candidates’, he said, and he expects nothing in return except the opportunity “of being able to articulate your client’s point of view.”

The profession has been defined by the media, he said, as being negative or dirty: “It’s a great word to use if you’re trying to use a smear tactic on a candidate, but it doesn’t necessarily reflect the character of that candidate because they happen to be a lobbyist.”

A 2013 Gallup poll showed Americans view lobbying as the least honest and ethical profession.

The left portrays lobbyists as tools of big money. The right portrays them as the tools of crony capitalism.

“Voters don’t like lobbyists. ... They see them as fixers who game the system,” said Rick Hasen, an election-law expert at the University of California-Irvine who has written about lobbyists’ influence in politics and government. “And so trying to sully someone up as being a lobbyist even though you may be benefiting from them is a very common political strategy.”

In a recent interview with USA TODAY, Kyl, who supports Ducey, defended lobbying.

“The right to petition government is embedded in the Constitution,” Kyl said. “Charities have lobbyists, farmers have lobbyists, teachers have lobbyists. There’s nothing wrong with it. It’s the American way.”

Lobbyist Mario E Diaz agrees. First and foremost, he said, his donations to DuVal are part of his constitutional right to support candidates who will advance public policy.

“No. 2, I’m an Arizonan, and I want nothing but success for my state,” he continued. “No. 3, I’ve known Fred DuVal for at least 20 years, and so I have a sense of loyalty and friendship. And then down the line somewhere, I do represent clients.”

Diaz said it’s “hypocritical” for the Republican Governors Association to “single out” DuVal when other GOP officials have also “made a living off” the state Capitol. “If that’s the narrative, then shame on the DGA (Democratic Governors Association) for not pointing the finger back.”