Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 3 Invest|gat|ve Cverv|ew
lrom 2011 Lo 2013, Maryland Covernor MarLln C'Malley led fundralslng efforLs aL Lhe uemocraLlc Covernors AssoclaLlon (uCA). ln hls role, C'Malley ralsed mllllons of dollars from conLracLors who do buslness wlLh Lhe sLaLe of Maryland.
Already, waLchdog organlzaLlons and medla ouLleLs have polnLed ouL Lhe obvlous eLhlcal concerns of our governor sklrLlng sLaLe elecLlon laws by ralslng unllmlLed dollars from sLaLe conLracLors for Lhe uCA.
8ecognlzlng Lhe lnapproprlaLe and uneLhlcal naLure of Lhese relaLlonshlps, Maryland law prohlblLs conLracLors from maklng conLrlbuLlons Lo an elecLed offlclal's campalgn accounL. 1he evldence ln Lhls reporL lndlcaLes Lhe posslblllLy of a dellberaLe, coordlnaLed aLLempL by Lhe C'Malley-8rown admlnlsLraLlon Lo clrcumvenL Lhe lnLenL of Lhe law by sollclLlng unllmlLed donaLlons Lo a federal, raLher Lhan sLaLe, accounL from Lhose wanLlng sLaLe conLracLs or favorable declslons.
ln LoLal, companles dolng buslness wlLh Maryland have donaLed over $3.7 mllllon Lo Lhe uemocraLlc Covernors AssoclaLlon, and recelved over $4.4 bllllon ln sLaLe conLracLs over Lhe lasL Lwo years. MosL recenLly, unlLed PealLhcare Servlces - a Lop donor Lo Lhe uCA - recelved Lhe emergency no-bld conLracL Lo flx problems wlLh Maryland's Lroubled healLhcare exchange, Maryland PealLh ConnecLlon.
unlLed PealLhcare Servlces, a chlld company of unlLed PealLh Croup, whlch also owns CpLum/CSSl, Lhe company broughL ln Lo flx Lhe healLh exchange, donaLed $630,000 Lo Lhe uCA LhroughouL C'Malley's Lenure as chalr. no explanaLlon was offered as Lo how Lhe declslon was made Lo award Lhe emergency conLracL Lo CpLum/CSSl.
Change Maryland's lnvesLlgaLlon follows Lhe LransacLlonal hlsLory of Lhe relaLlonshlp beLween Lhe C'Malley admlnlsLraLlon and Lhose who boLh do buslness wlLh Lhe sLaLe and conLrlbuLe Lo Lhe uCA.
lf Lhe exlsLence of a corrupL pay-Lo-play" sysLem ls furLher subsLanLlaLed, Lhe C'Malley - 8rown AdmlnlsLraLlon wlll have seL Maryland back decades. !ob creaLors looklng Lo esLabllsh Lhelr buslness ln Lhe mld-ALlanLlc reglon wanL a sLable and predlcLable buslness cllmaLe. 1hey wanL Lo conducL Lhelr buslness wlLhouL Lhe heavy hand of pollLlclans shaklng Lhem down for hundreds of Lhousands ln eLhlcally quesLlonable pollLlcal donaLlons.
lor Lhe sake of Lransparency and good governance, we belleve Lhese allegaLlons serlously warranL furLher lnvesLlgaLlon.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 4
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 5 nea|thcare
Un|ted nea|thcare Serv|ces: 56S0,000
unlLed PealLhcare Servlces ls a large mulLlfaceLed healLhcare servlces provlder and ls a ma[or managed care organlzaLlon ln Maryland's Medlcald program. Slnce 2008, Lhe Lroubled ueparLmenL of PealLh and MenLal Pyglene 1 has pald Lhe company more Lhan $2 bllllon ln sLaLe conLracLs. 2
ln addlLlon, recenLly CpLum/CSSl, a subsldlary of unlLedPealLh Croup whlch owns unlLed PealLhcare Servlces, was awarded an emergency conLracL Lo flx Lhe sLaLe's Lroubled healLhcare exchange webslLe. 3 no explanaLlon was offered as Lo why Lhe sLaLe awarded Lhe no-bld conLracL Lo CpLum/CSSl.
Medco]Lxpress Scr|pts: 5302,000
ln Aprll 2012, prescrlpLlon drug plan manager Lxpress ScrlpLs compleLed a $29 bllllon merger wlLh Medco. 4 ln lebruary 2012, Lhe Maryland 8oard of ubllc Works (8W) awarded Lo Lxpress ScrlpLs a lucraLlve $2.3 bllllon conLracL Lo manage Lhe sLaLe's employee and reLlree prescrlpLlon drug program. 3
lrom 2011-2013, Medco and Lxpress ScrlpLs donaLed $302,000 Lo Lhe C'Malley led uCA. A Llmellne of Lhe Lxpress ScrlpLs-Medco merger shows LhaL boLh companles were ln negoLlaLlons slnce 2006, and LhaL Lhe deal plcked up sLeam ln 2011, Lhe same Llme Medco made lLs $100,000 donaLlon Lo Lhe uCA. 6
Cn March 9, 2011 Lhe 8W deferred awardlng Lhe conLracL Lo Lxpress ScrlpLs because of concerns ralsed by SLaLe 1reasurer nancy kopp and CompLroller eLer lranchoL. ln 2008, Lxpress ScrlpLs pald $9.3 bllllon Lo Maryland and 28 oLher sLaLes Lo seLLle complalnLs LhaL lL encouraged docLors Lo swlLch cholesLerol drug brands for Lhelr paLlenLs. 7 Accordlng Lo Lhe 8alLlmore Sun, Lxpress ScrlpLs offered Lo handle Lhe flve-year conLracL for $30 mllllon less Lhan 8ockvllle-based CaLalysL 8x, whlch had Lhe currenL conLracL. Covernor C'Malley wanLed Lhe Lxpress ScrlpLs conLracL because Lhe savlngs would have helped hls admlnlsLraLlon, whlch was deallng wlLh a $1.6 bllllon budgeL deflclL.
CaLalysL 8x flled a proLesL wlLh Lhe sLaLe's conLracL appeals board, buL was ulLlmaLely denled, even Lhough Lhe board found several flaws ln Lhe procuremenL process used by C'Malley's
1 Mark Newgent, "Whistleblower at disabilities agency fired by O'Malley-Brown administration, she alleges." Maryland Reporter, October 31, 2013, Accessed December 27, 2013, http://marylandreporter.com/2013/10/31/whistle-blower-at-disabilities-agency-fired- by-omalley-brown-administration-she-alleges/. 2 Maryland Department of Budget and Management. Maryland Funding Accountability and Transparency. Available at: http://www.spending.dbm.maryland.gov/. " Meredith Cohn, "Company helping fix Md. health exchange linked to firm selling policies." Baltimore Sun, December 28, 2013, Accessed December 28, 2013, http://www.baltimoresun.com/news/maryland/sun-investigates/bs-md-sun-investigates-qssi- 20131227,0,7266301.story. 4 Timothy W. Martin and John Kamp, "Merger to mean more Rx by mail." Wall Street Journal, April 2, 2012, Accessed December 27, 2013, http://online.wsj.com/news/articles/SB10001424052702303816504577319372702722002. 5 Michael Dresser, "State workers to get new pharmacy plan." The Baltimore Sun, February 8, 2012, Accessed December 27, 2013, http://articles.baltimoresun.com/2012-02-08/news/bs-md-pharmacy-contractor-20120208_1_express-scripts-walgreens-pharmacy. 6 "Express Scripts/Medco deal: timeline." St. Louis Post-Dispatch, April 3, 2012, Accessed December 27, 2013, http://www.stltoday.com/express-scripts-medco-deal-timeline/article_518896f0-7cda-11e1-a728-001a4bcf6878.html. 7 Annie Linskey, "Concerns delay state action on $2.3 billion drug contract." The Baltimore Sun, March 9, 2011, Accessed December 27, 2013, http://articles.baltimoresun.com/2011-03-09/news/bs-md-express-scripts-20110309_1_drug-contract-rockville-firm- maryland-contract.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 6 budgeL deparLmenL Lo award Lhe bld Lo Lxpress ScrlpLs. 8 ln laLe !anuary 2012, Lhe 8W once agaln delayed awardlng Lhe conLracL Lo Lxpress ScrlpLs. Accordlng Lo Lhe 8alLlmore Sun, C'Malley complalned LhaL Lhe award process had become "Lhe sub[ecL of endless delays and hlgh powered lobbylng."
Cn lebruary 8, 2012, Lhe 8W flnally voLed Lo award Lhe conLracL Lo Lxpress ScrlpLs. C'Malley and kopp voLed yes, whlle lranchoL voLed agalnsL Lhe conLracL. 9
lL ls curlous LhaL Covernor C'Malley lgnored Lxpress ScrlpLs pasL Lroubles and was so eager Lo approve Lhe conLracL glven LhaL Lhe company's dublous pasL lnvolves a case where lL allegedly overbllled 8alLlmore ClLy's employee prescrlpLlon plan for hundreds of Lhousands of dollars durlng C'Malley's Lenure as mayor.
ln 2003, 8alLlmore ClLy Councllman 8oberL Curran, C'Malley's broLher-ln-law, led an expanslve clLy audlL of Lxpress ScrlpLs' $273 mllllon clLy employee prescrlpLlon drug conLracL. 1he audlL, expanded by Curran afLer an lnlLlal lnvesLlgaLlon, found LhaL Lxpress ScrlpLs overbllled Lhe clLy ln beLween $300,000-$700,000. Lxpress ScrlpLs evenLually repald Lhe clLy [usL $240,000. 1he 8alLlmore ClLy 8oard of LsLlmaLes, of whlch C'Malley was a member aL Lhe Llme, voLed Lo approve $14,000 ln fundlng for Lhe expanded audlL. 10
11
Comprehens|ve nea|th Management Inc. (We||care): 526S,000
Comprehenslve PealLh ManagemenL lnc., a subsldlary of Wellcare, provldes managed care servlces Lhrough Medlcald and Medlcare. AfLer lLs $33,000 donaLlon, Wellcare saw a slgnlflcanL [ump ln sLaLe spendlng. lrom 2008-2010 Lhe ueparLmenL of PealLh and MenLal Pyglene pald Wellcare an average of $131,000 per year. uPMP spendlng on Wellcare lncreased Lo $723,000 ln 2011 and Lo $1.3 mllllon ln 2012. 12
Va|ueCpt|ons nea|thcare: 51S4,0S0
valueCpLlons PealLhcare conLracLs wlLh sLaLe governmenLs Lo provlde menLal healLhcare servlces. AfLer maklng lLs 2011 donaLlon Lo Lhe uCA, paymenLs from Lhe ueparLmenL of MenLal PealLh and Pyglene nearly doubled. ln 2011 uPMP pald valueCpLlons 8.3 mllllon, up from $4.9 mllllon ln 2010. ln 2012, uPMP pald Lhe company $9.4 mllllon. 13
8 Michael Dresser, "State considers new pharmacy plan without Walgreens." The Baltimore Sun, January 25, 2012, Accessed December 27, 2013, http://articles.baltimoresun.com/2012-01-25/news/bs-md-pharaceutical-contract-20120125_1_express-scripts- walgreens-pharmacy. 9 Michael Dresser, "State workers to get new pharmacy plan." The Baltimore Sun, February 8, 2012, Accessed December 27, 2013, http://articles.baltimoresun.com/2012-02-08/news/bs-md-pharmacy-contractor-20120208_1_express-scripts-walgreens-pharmacy. 10 John Fritze, "City expands audit of company." The Baltimore Sun, December 22, 2005, Accessed December 27, 2013, http://articles.baltimoresun.com/2005-12-22/news/0512220128_1_express-scripts-drug-benefits-audit. 11 John Fritze, "City/County Digest." The Baltimore Sun, December 21, 2006, Accessed December 27, 2013, http://articles.baltimoresun.com/2006-12-21/news/0612210244_1_express-scripts-inspections-and-permits-audit. 12 Maryland Department of Budget and Management. Maryland Funding Accountability and Transparency. Available at: http://www.spending.dbm.maryland.gov/. 13 Maryland Department of Budget and Management. Maryland Funding Accountability and Transparency. Available at: http://www.spending.dbm.maryland.gov/.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 7 Lnergy
Lxe|on: 5S4S,000]Conste||at|on 5S0,3S0
ln 2011, Chlcago-based Lxelon soughL an $8 bllllon merger wlLh ConsLellaLlon Lnergy. 1he merger needed SC approval, and C'Malley lnlLlally opposed Lhe deal. Powever, Lhrough a pollLlcal shakedown, he wrung more Lhan $1 bllllon ln concesslons, nearly double whaL Lxelon lnlLlally offered. 14 1he deal doubled Lhe amounL Lxelon and ConsLellaLlon would pay lnLo C'Malley's Lmower Maryland scheme, $30 mllllon for offshore wlnd developmenL, and $2 mllllon Lo sLaLe unlverslLles Lo fund wlnd energy research. 1he SC approved Lhe merger ln lebruary 2012.
Covanta Lnergy: 54S0,297
CovanLa ls a MonLgomery CounLy-based energy company LhaL supporLed Lhe 2011 wasLe-Lo- energy leglslaLlon - addlng wasLe energy Lo Maryland's renewable porLfollo sLandard - whlch C'Malley slgned lnLo law. LobbylsL dlsclosures for Lhe 2010, 2011, and 2012 leglslaLlve sesslons show LhaL CovanLa hlred several lobbylsLs from CaplLol SLraLegles. 13 CaplLol SLraLegles donaLed $26,330 Lo Lhe uCA ln 2011.
Compet|t|ve ower Ventures: 5100,000
CompeLlLlve ower venLures (Cv) ls a Sllver Sprlng-based energy company LhaL won SC approval Lo bulld a 661-megawaLL gas flred elecLrlc generaLlng planL ln Waldorf, Mu. 1he SC declslon also mandaLes uLlllLles llke 8CL, LCC and uelmarva ower and LlghL Lo buy power from Lhe Cv faclllLy, due Lo a lack of prlvaLe flnanclng. 16 1he Cv bld was backed by Lhe C'Malley admlnlsLraLlon.
ln CcLober 2013, a federal courL ruled LhaL Lhe SC plan Lo seL Lhe prlce Cv would recelve for wholesale elecLrlclLy over 20 years vlolaLed Lhe u.S. ConsLlLuLlon by preempLlng federal supremacy. 17
Cv's $100,000 donaLlon was made Lhrough flve separaLe $20,000 conLrlbuLlons by Cv subsldlarles.
Lnergy Answers: 5100,000
Lnergy Answers ls a new ?ork-based energy company LhaL bullL a wasLe-Lo-energy faclllLy ln 8alLlmore and supporLed Lhe same wasLe-Lo-energy law LhaL beneflLs CovanLa. Covernor C'Malley slgned lnLo law Lhe leglslaLlon allowlng wasLe energy Lo quallfy as a renewable energy
14 "Concessions seal deal for O'Malley," Maryland Public Policy Institute, Accessed December 27, 2013, http://www.mdpolicy.org/research/detail/concessions-seal-deal-for-omalley. 15 Maryland State Ethics Commission. Listings of Registered Lobbyists; Employer List No. 6. Available at: http://ethics.gov.state.md.us/listing.htm. Accessed December 27, 2013. 16 "Md. PSC taps CPV to build 661-MW gas fired plant," SNL Financial, Accessed December 27, 2013, http://www.snl.com/Interactivex/article.aspx?CdId=A-14632199-11567. 17 Jamie Smith Hopkins, "Deal for new power plant ruled unconstitutional." The Baltimore Sun, October 1, 2013, Accessed December 27, 2013, http://articles.baltimoresun.com/2013-10-01/business/bs-bz-power-plant-contracts-unconstitutional-20131001_1_power- plant-competitive-power-the-psc.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 8 source under Maryland's renewable porLfollo sLandard, Lhe same day Lnergy Answers cuL lLs $100,000 check Lo Lhe uCA. 18
Chesapeake Lnergy: 58S,000
Chesapeake Lnergy ls an Cklahoma-based oll and gas company LhaL operaLes across Lhe counLry. Cn May 2, 2011, ALLorney Ceneral uoug Cansler noLlfled Chesapeake Lnergy LhaL he lnLended Lo flle sulL agalnsL Lhe company for vlolaLlng Lhe federal 8esource ConservaLlon and 8ecovery AcL, and Lhe Clean WaLer AcL. 19 Chesapeake operaLes a naLural gas well ln ennsylvanla LhaL leaked fracklng fluld lnLo a creek LhaL feeds lnLo Lhe Susquehanna 8lver, whlch feeds lnLo Lhe Chesapeake 8ay. Cn !une 29, 2011, Chesapeake donaLed $30,000 Lo Lhe uCA. A year laLer on !une 14, 2012 Cansler announced he reached an agreemenL wlLh Lhe company Lo pay $300,000 Lo Lhe Susquehanna 8lver 8asln Commlsslon for waLer quallLy monlLorlng. Cansler's press release sLaLes, "ALLorney Ceneral Cansler acLed wlLh Lhe supporL of Covernor MarLln C'Malley and Lhe Maryland ueparLmenL of Lhe LnvlronmenL, whlch provlded Lechnlcal asslsLance ln supporL of Lhe acLlon." 20 Chesapeake Lnergy gave $33,000 Lo Lhe uCA ln 2012, Lhough lL only gave $27,730 ln 2010 and dld noL glve ln 2009.
NkG Lnergy: 58S,000
n8C Lnergy of rlnceLon, n! ls Lhe parenL company of n8C 8luewaLer Wlnd, a company seeklng Lo bulld an offshore wlnd farm off Lhe coasL of Maryland. n8C, llke 8eowulf, beneflLs from Covernor C'Malley's slgnaLure Cffshore Wlnd Lnergy AcL of 2013, whlch guaranLees raLepayer subsldlzed flnanclng for Lhe company LhaL wlns Lhe developmenL bld. Accordlng Lo Lhe ueparLmenL of LeglslaLlve Servlces flscal pollcy noLe, raLepayers wlll be responslble for subsldlzlng $1.7 bllllon. 21 1he Maryland ubllc Servlce Commlsslon wlll glve flnal approval Lo Lhe pro[ecL. Lobbylng reporLs from Lhe Maryland SLaLe LLhlcs Commlsslon show n8C has been lobbylng Lhe leglslaLure and execuLlve branch on energy lssues slnce 2010.
8eowu|f Lnergy LLC & |ts Subs|d|ar|es: 570,000
Colorado Lnergy LLC ls a subsldlary of 8eowulf Lnergy, 22 whlch employs Covernor C'Malley's former chlef of sLaff, Mlchael LnrlghL. Colorado Lnergy supporLs Maryland Solar LLC, anoLher 8eowulf subsldlary. Cn !uly 27, 2011 Lhe Maryland 8oard of ubllc Works approved a lease of 230 acres of former sLaLe prlson land Lo Maryland Solar Lo consLrucL a solar farm. 23 1he Colorado Lnergy donaLlon was made on !une 14, 2011.
An AugusL 7, 2011 arLlcle ln Lhe LasLon SLar uemocraL noLed Lhe "cloudy" afflllaLlons of Maryland Solar and 8eowulf. 1he arLlcle reporLed LhaL when Lhe AssoclaLed ress conLacLed Maryland Solar vlce resldenL, !on Moore, he was "mosLly vague and evaslve, communlcaLlng
18 Timothy B. Wheeler, "O'Malley to sign waste-to-energy bill." The Baltimore Sun, May 17, 2011, Accessed December 27, 2013, http://articles.baltimoresun.com/2011-05-17/features/bs-gr-governor-waste-energy-20110517_1_renewable-energy-renewable- sources-offshore-wind. 19 Maryland Attorney General. Attorney General Gansler Notifies Chesapeake Energy of State's Intent to Sue for Endangering the Health of Citizens and the Environment. Available at: http://www.oag.state.md.us/Press/2011/050211.html. Accessed December 27, 2013. 20 Maryland Attorney General. AG Gansler Secures Funding to Safeguard Susquehanna Water Quality. Available at: http://www.oag.state.md.us/Press/2012/061412.html. Accessed December 27, 2013. 21 Department of Legislative Services. Fiscal and Policy Note SB 275 Maryland Offshore Wind Energy Act of 2013. Available at: http://mgaleg.maryland.gov/2013RS/fnotes/bil_0005/sb0275.pdf. 22 Testimony of Jonathan S. Moore, Maryland Public Service Commission, June 20, 2011 Case 9272. 23 Associated Press, "Board approves solar project on prison land in Western Md." Maryland Daily Record, July 28, 2011, Accessed December 27, 2013, http://thedailyrecord.com/2011/07/27/board-approves-solar-project-on-prison-land-in-western-md/.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 9 only LhaL Lhe company ls based ln Annapolls wlLh an afflllaLe offlce ln LasLon." Moore was also quoLed as he "would raLher noL say" lf 8eowulf was Lhe company he was referrlng Lo. 1he Maryland ubllc Servlce Commlsslon also granLed Maryland Solar a walver so lL could begln consLrucLlon on Lhe PagersLown solar farm before federal subsldles explred. 24
MldALlanLlc ower, anoLher subsldlary of 8eowulf Lnergy, uslng Lhe same LasLon Mu address as 8eowulf, gave $30,000 Lo Lhe uCA ln 2012.
luLhermore, 8eowulf ls lnLeresLed ln bulldlng an offshore wlnd farm off Lhe coasL of Maryland, and accordlng Lo Lhe WashlngLon osL LnrlghL was a proponenL of C'Malley's slgnaLure offshore wlnd leglslaLlon. 23 8eowulf donaLed $10,000 Lo Lhe uCA ln 2011.
At|ant|c Gr|d Cperat|ons & |ts artners: 56S,000
ALlanLlc Crld CperaLlons ls a subsldlary of Lhe Chevy Chase-based ALlanLlc Wlnd ConnecLlon. ALlanLlc Wlnd ConnecLlon ls an offshore undersea elecLrlc Lransmlsslon llne pro[ecL sLreLchlng from new !ersey Lo vlrglnla, whlch seeks Lo connecL offshore wlnd farms bullL off Lhe easL coasL. 26 ALlanLlc Wlnd ConnecLlon wlll beneflL greaLly from C'Malley's Cffshore Wlnd Lnergy AcL, as Lhe company's Lransmlsslon llne wlll brlng power produced by Maryland offshore wlnd farms onshore. ln 2013, ALlanLlc Wlnd ConnecLlon hlred former C'Malley communlcaLlons dlrecLor 8lck Abbruzzese Lo lobby Lo preserve and proLecL ALlanLlc Wlnd ConnecLlon's lnLeresLs before Lhe execuLlve and leglslaLlve branches wlLh respecL Lo energy, wlnd power and slmllar maLLers. 27 ln addlLlon, Coogle ls a parLner ln Lhe ALlanLlc Wlnd ConnecLlon pro[ecL and has a 38 percenL sLake ln Lhe $3 bllllon pro[ecL. 28
29 Coogle gave Lhe uCA $33,000 beLween 2011-2013.
Waste Management: 5S7,400
Llke CovanLa and Lnergy Answers, WasLe ManagemenL ls ln Lhe wasLe-Lo-energy buslness and ls rellanL on allowlng wasLe energy Lo quallfy for Lhe sLaLe's renewable porLfollo sLandard. A subsldlary of WasLe ManagemenL ls developlng Lhe lrederlck/Carroll CounLy 8enewable WasLe- Lo-Lnergy laclllLy wlLh Lhe norLheasL Maryland WasLe ulsposal AuLhorlLy. 30 WasLe ManagemenL doubled lLs prevlous conLrlbuLlon ln 2011 and Lrlpled lL ln 2012.
Lnergy |us no|d|ngs LLC: 5S0,000
Lnergy lus Poldlngs LLC flled an appllcaLlon Lo Lhe SC for a llcense Lo sell naLural gas ln Maryland on March 23, 2011. 1he company donaLed $30,000 Lo Lhe uCA on May 31, 2011. 1he SC approved Lhe company's llcense laLer LhaL year on CcLober 26, 2011. 31
24 Carolyn Swift, "Maryland Solar cloudy on affiliations; Comptroller thinks public could have better deal." Easton Star Democrat, August 7, 2011, Accessed December 27, 2013, http://www.stardem.com/business/article_0ef7ed35-0b8e-5de4-b181- f7ff3c4b8fe2.html. 25 Aaron C. Davis, "For O'Malley and friend interests align in offshore wind bill." Washington Post, March 17, 2011, Accessed December 27, 2013, http://www.washingtonpost.com/wp-dyn/content/article/2011/03/15/AR2011031502520.html. 26 "Atlantic Wind Connection," Atlantic Wind Connection, Accessed December 27, 2013, http://atlanticwindconnection.com/awc- projects/atlantic-wind-connection. 27 Rick Abbruzzese lobbying registration form, January 1, 2013. 28 "About Us," Atlantic Wind Connection, Accessed December 27, 2013, http://atlanticwindconnection.com/about-us/team. 29 Hanah Cho and Frank D. Roylance, "Md.-based company leads Google-backed wind project." The Baltimore Sun, October 12, 2010, Accessed December 27, 2013, http://articles.baltimoresun.com/2010-10-12/business/bs-bz-google-wind-farm- 20101012_1_wind-farms-offshore-wind-wind-energy-industry. 30 "Frederick/Carroll County renewable waste-to-energy facility," Northeast Maryland Waste Disposal Authority, Accessed December 27, 2013, http://www.nmwda.org/projects_and_services/frederick_carroll_wte.shtml. 31 Maryland Public Service Commission. Letter order from Maryland PSC to Energy Plus, LLC, October 26, 2011. Available at: http://webapp.psc.state.md.us/Intranet/home.cfm.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 10 Lverower W|nd no|d|ngs: 53S,000
Lverower Wlnd Poldlngs ls Lhe parenL company of 8lg Savage LLC. 8lg Savage soughL SC approval for Lhe Maryland porLlon of a power llne lL wanLed Lo consLrucL ln Allegany CounLy for lLs wlnd farm [usL over Lhe border ln ennsylvanla. 8lg Savage flled lLs appllcaLlon on Aprll 20, 2011 and Lverower made lLs donaLlon Lo Lhe uCA on May 24, 2011. 8lg Savage's appllcaLlon was approved on SepLember 22, 2011. 32
Iores|ght Lnergy LLC: 52S,000
8lversLone Poldlngs LLC ls a mlnorlLy owner of loreslghL LLC. 33 As parL of lLs agreemenL wlLh Lhe Maryland ubllc Servlce Commlsslon and Lhe lederal Lnergy 8egulaLory Commlsslon Lo acqulre ConsLellaLlon Lnergy, Lxelon was requlred Lo sell Lhree coal-flred planLs lL owned ln Maryland. Lxelon sold Lhe Lhree planLs Lo 8lversLone Poldlngs LLC for $400 mllllon. 34 loreslghL made a $23,000 donaLlon on Lo Lhe uCA on !une 6, 2012. 1he agreemenL was announced ln AugusL and compleLed ln uecember. 1he loreslghL donaLlon appears Lo be anoLher unexamlned parL of C'Malley's shakedown of Lxelon.
32 Maryland Public Service Commission. Public Utility Law Judge Order Case # 9268, Before the Maryland Public Service Commission September 22, 2011. Available at: http://webapp.psc.state.md.us/Intranet/home.cfm. 33 Matthew Hibbard, "Foresight Energy Company Completes $1.55 billion financing." St. Louis Business Journal, August 26, 2013, Accessed December 27, 2013, http://www.bizjournals.com/stlouis/blog/2013/08/foresight-energy-completes-155.html. 34 Lorraine Mirabella, "Exelon agress to sell 3 Md. Coal plants for $400 million." The Baltimore Sun, August 9, 2012, Accessed December 27, 2013, http://articles.baltimoresun.com/2012-08-09/news/bs-bz-exelon-sells-coal-plants-20120809_1_exelon- spokesman-coal-plants-brandon-shores/.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 11 Gamb||ng
Sc|ent|f|c Games Management Corp & |ts no|d|ng Company: 5S10,000
SclenLlflc Cames ls a gamlng company LhaL provldes servlces Lo sLaLe loLLerles. ln 2006, Maryland approved a flve-year $81 mllllon conLracL wlLh SclenLlflc Cames LhaL conLalned a slngle flve-year renewal clause. 33 Cn May 21, 2011 Covernor C'Malley and Lhe 8oard of ubllc Works approved Lhe conLracL exLenslon wlLh SclenLlflc Cames. 36 1hree monLhs laLer, SclenLlflc Cames made Lhelr $30,000 conLrlbuLlon Lo Lhe uCA. As Lhe conLracL's renewal approached SclenLlflc Cames doubled Lhelr prevlous conLrlbuLlons Lo Lhe uCA: ln 2009, Lhey donaLed [usL $23,000 buL doubled LhaL Lo $30,370 ln 2010, and $30,000 ln 2011. 1he company doubled Lhelr donaLlon agaln ln 2012, glvlng $110,000 Lo Lhe uCA.
ln addlLlon, MacAndrews lorbes, Lhe holdlng company for SclenLlflc Cames, donaLed $130,000 ln 2011, and $200,000 ln 2012.
Gtech Corporat|on: 531S,9S0
ln !anuary 2010, Lhe Maryland 8oard of ubllc Works voLed Lo award Lhe sLaLe's $21.3 mllllon sloLs monlLorlng conLracL Lo lnLernaLlonal gamlng flrm CLech. 37 1he conLracL conLalns a flve-year renewal opLlon worLh $17.3 mllllon. MarLln C'Malley and 1reasurer nancy kopp voLed yes, wlLh CompLroller eLer lranchoL casLlng a dlssenLlng voLe. CLech repald C'Malley's largesse wlLh a $103,000 donaLlon Lo Lhe uCA Lhe nexL year.
1he 8alLlmore Sun noLed LhaL desplLe several allegaLlons of brlbery and klckbacks daLlng back Lo Lhe 1990s, Lhe 8oard of ubllc Works dld noL dlsquallfy CLech from conslderaLlon. 38
ln AugusL 2013, Lhe Maryland LoLLery awarded CLech a four-year lnsLanL LlckeLlng conLracL, 39
and ln 2008 Lhe loLLery awarded CLech a $12 mllllon conLracL Lo provlde and servlce loLLery prlnLlng machlnes. 40 Slnce 2008, Maryland has pald CLech $9.3 mllllon.
Gu|fstream ark kac|ng Assoc|at|on: 5200,000
ln 2011 Ml uevelopmenLs, Lhe ma[orlLy owner of Lhe Maryland !ockey Club, Lransferred raclng asseLs lncludlng Laurel ark, lmllco and CulfsLream ark ln llorlda Lo lLs chalrman and CLC, Canadlan buslnessman lrank SLronach. 41 ln 2010, C'Malley brokered a deal LhaL guaranLeed llve raclng Lo Laurel ark and lmllco. uurlng Lhe 2011 leglslaLlve sesslon, Lhe Ceneral Assembly passed and C'Malley slgned lnLo law P8 1039, whlch exLended Lhe deal C'Malley brokered and
35 "Scientific Games awarded new Maryland Lottery contract," Scientific Games Corporation, Accessed December 27, 2013, http://phx.corporate-ir.net/phoenix.zhtml?c=64574&p=irol-newsArticle&ID=777196&highlight=. 36 "Scientific Games announces Norsk Tipping Lottery systems contract, and additional contract extensions," Bloomberg, Accessed December 27, 2013, http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=SGMS:US&sid=aFJxlg_wfZcw. 37 Associated Press, "State Oks slots monitoring contract." LA Times, January 7, 2010, Accessed December 27, 2013, http://www.latimes.com/news/opinion/commentary/bal-md.slots07jan07,0,3026542.story. 38 Laura Smitherman, "Slots Firm's Md. Past." The Baltimore Sun, December 16, 2009, Accessed December 27, 2013, http://articles.baltimoresun.com/2009-12-16/news/0912150064_1_contract-with-gtech-corp-lottery-staff-slots-program. 39 "Gtech is awarded a secondary contract for instant ticketing printing services with the Maryland Lottery," Gtech Lottery, Accessed December 27, 2013, http://gtechlottery.com/gtech-is-awarded-a-secondary-contract-for-instant-ticket-printing-services-with-the- maryland-lottery/. 40 "Gtech to provide Maryland Lottery with 1,000 new instant ticket vending machines," Gtech Lottery, Accessed December 27, 2013, http://www.gtech.com/eng/investor/documents/cs/8589_awLottomatica.html. 41 Hanah Cho, "MID shareholders approve race track transfer." The Baltimore Sun, March 29, 2011, Accessed December 27, 2013, http://www.gtech.com/eng/investor/documents/cs/8589_awLottomatica.html.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 12 allowed Lhe Maryland !ockey Club Lo use sloLs revenue Lo pay for operaLlonal expenses lnsLead of Lrack upgrades. 42
Caesars Lnterta|nment Corporat|on: 51S0,000 Caesars LnLerLalnmenL CorporaLlon donaLed $30,000 Lo Lhe uCA ln 2011 and doubled Lhelr donaLlon Lo $100,000 ln March 2012. ln !uly of 2012, Caesars was awarded a sLaLe conLracL Lo bulld a $310 mllllon caslno ln 8alLlmore near M&1 8ank SLadlum. 43
42 HB1039, Session of 2011 (Md. 2011), http://mgaleg.maryland.gov/webmga/frmMain.aspx?ys=2011rs/billfile/hb1039.htm. 43 James Bach, "Caesars group awarded Baltimore casino license." Baltimore Business Journal, July 31, 2013, Accessed December 27, 2013, http://www.bizjournals.com/baltimore/blog/real-estate/2012/07/caesars-led-bid-baltimore.html?page=all.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 13 Cther Industr|es
Motoro|a: 5330,600
MoLorola, a communlcaLlons company, donaLed $100,230 Lo Lhe uCA ln 2011, $220,330 ln 2012, and $10,000 ln 2013. 8eLween 2008-2010 MoLorola averaged $1.7 mllllon ln sLaLe conLracLs accordlng Lhe Maryland lundlng AccounLablllLy and 1ransparency webslLe. AfLer 2011, Lhe amounL of money Maryland pald MoLorola lncreased exponenLlally. ln 2011 varlous Maryland agencles pald MoLorola $7.8 mllllon, and ln 2012 Lhe amounL more Lhan doubled Lo $18 mllllon. 44
nN18: 5300,8S0
Pn18 ls an englneerlng and archlLecLural flrm LhaL has recelved mllllons of dollars from Lhe Maryland SLaLe Plghway AdmlnlsLraLlon and Maryland AvlaLlon AdmlnlsLraLlon slnce 2008. Powever, Lhe amounL Lhe company recelved beLween 2008-2011 decreased slgnlflcanLly from $2.2 mllllon. AfLer Lhe company's $100,300 donaLlon ln !une of 2011, Lhe amounL of money Lhe sLaLe pald Lo Pn18 [umped Lo $3.3 mllllon.
new|ett ackard: 5300,000
PewleLL ackard donaLed Lo Lhe uCA $100,000 ln 2011 and $200,000 ln 2012. Accordlng Lo Lhe Maryland lundlng AccounLablllLy and 1ransparency webslLe, PewleLL ackard averaged $201,000 ln sLaLe conLracLs beLween 2008-2010. ln 2011 and 2012, sLaLe paymenLs Lo PewleLL ackard lncreased subsLanLlally - averaglng $1.4 mllllon. 43
Mot|on |cture Assoc|at|on of Amer|ca: 523S,000
Cn May 19, 2011, Covernor C'Malley slgned S8672 - Lhe Maryland lllm LmploymenL AcL of 2011 - lnLo law. 46 1he acL creaLed a $7.3 mllllon subsldy for Lelevlslon and fllm producLlons ln Maryland. ln 2013, C'Malley champloned and Lhe leglslaLure approved an expanslon of Lhe subsldy, whlch Lrlpled lL Lo $23 mllllon. 47 C'Malley ls uslng Lhe fllm Lax credlL Lo burnlsh hls presldenLlal credenLlals wlLh Pollywood. C'Malley recenLly vlslLed Lhe seL of Lhe neLfllx serles Pouse of Cards Lo LouL Lhe credlL 48 as well as Lhe seL of Lhe P8C serles vLL, boLh of whlch are fllmed ln Maryland. 49
Leve| 3 Commun|cat|ons: 5117,000
Level 3 CommunlcaLlons ls a flrm LhaL offers lnformaLlon Lechnology and communlcaLlons servlces Lo sLaLe governmenLs. Level 3 donaLed $23,000 Lo Lhe uCA ln 2010 and 2011. ln 2012,
44 Maryland Department of Budget and Management. Maryland Funding Accountability and Transparency. Available at: http://www.spending.dbm.maryland.gov/. 45 Maryland Department of Budget and Management. Maryland Funding Accountability and Transparency. Available at: http://www.spending.dbm.maryland.gov/. 46 SB672, Session of 2011 (Md. 2011), http://mgaleg.maryland.gov/webmga/frmMain.aspx?ys=2011rs/billfile/sb0672.htm. 47 Gina Hall, "Maryland triples film tax incentive to woo Hollywood production." LA Business Journal, April 8, 2013, Accessed December 27, 2013, http://www.bizjournals.com/losangeles/news/2013/04/08/maryland-triples-film-tax-incentive-to.html. 48 David Zurawik, "Martin O'Malley makes it to the Oval Office, but it's not the one in Washington." The Baltimore Sun, May 14, 2013, Accessed December 27, 2013, http://articles.baltimoresun.com/2013-05-14/entertainment/bal-martin-omalley-house-of-cards- kevin-spacey-incentives-20130514_1_martin-o-malley-willimon-francis-underwood. 49 "Governor O'Malley, local officials to visit set of Veep and highlight Md. film tax credit." Baltimore News Journal, November 15, 2013, Accessed December 27, 2013, http://www.baltimorenewsjournal.com/2013/11/15/governor-omalley-local-officials-to-visit-set- of-veep-and-highlight-success-of-md-film-tax-credit/.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 14 Lhe company more Lhan doubled lLs uCA donaLlons Lo $67,000. Also ln 2012, Level 3 CommunlcaLlons recelved conLracL paymenLs from Lhe Maryland ueparLmenL of lnformaLlon 1echnology, Maryland ubllc 1elevlslon, and Lhe CompLroller's offlce LoLallng $192,000. 30
ACS]kerox: 590,000
xerox acqulred AfflllaLed CompuLer Servlces (ACS) ln lebruary 2010 for $6.4 bllllon. ACS/xerox ls a ma[or reclplenL of sLaLe fundlng under Lhe C'Malley admlnlsLraLlon. Slnce 2008, Maryland has pald Lhe Lwo companles $333 mllllon comblned.
ln 2009, Maryland adopLed Lhe use of speed cameras and ACS was selecLed as Lhe vendor for Lhe sLaLe program. Lobbylng dlsclosure reporLs show LhaL ln 2008 and 2009, ACS employed hlgh-prlced and pollLlcally connecLed lobbylsLs Lo push for adopLlon of speed cameras and spenL $240,000 on lobbylng over Lhose Lwo years. 31
32 1hose lobbylsLs lncluded former Speaker of Lhe Maryland Pouse of uelegaLes Casper 1aylor, and Sean Malone, a former Lop alde Lo C'Malley as boLh Mayor of 8alLlmore and governor.
Slnce Lhe adopLlon, Maryland's speed camera program, as well as programs lmplemenLed by many munlclpallLles, has come under lncreased scruLlny for lssulng LlckeLs ln error and oLher falllngs.
A november 2012 leglslaLlve audlL found a serlous lack of accounLablllLy for ACS/xerox ln Lhe Maryland Safe Zone plloL program. 33
1he audlL found:
ACS was Lhe sole bldder for Lhe conLracL, and ACS' proposal dld noL meeL 8equesL for roposal requlremenLs. 1he speed deLecLlon equlpmenL used by ACS dld noL conform Lo Lhe lnLernaLlonal AssoclaLlon of Chlefs of ollce guldellnes as requlred by Lhe 8l. no benchmarks seL for rellablllLy and readablllLy of phoLographed vlolaLlons, Cnly 44 percenL of vlolaLlons were lssued clLaLlons because SPA deemed Lhem unreadable, 1he program dld noL undergo a callbraLlon LesL - as requlred by law - unLll nlne monLhs afLer speed cameras were operaLlonal.
ln november 2012, 8alLlmore ClLy dumped ACS/xerox and awarded lLs speed camera conLracL Lo anoLher vendor.
Cver Lhe prevlous Lwo leglslaLlve sesslons, xerox spenL aL leasL $182,000 lobbylng Lhe leglslaLure and admlnlsLraLlon regardlng speed cameras. 34 xerox, llke ACS ln 2008-2009, also hlred many of Lhe same lobbylsLs, lncludlng 1aylor, on behalf of lLs speed camera lnLeresLs.
50 Maryland Department of Budget and Management. Maryland Funding Accountability and Transparency. Available at: http://www.spending.dbm.maryland.gov/. 51 Maryland State Ethics Commission. Lobbying Employer Report 11/1/07-10/31/08. Available at: http://ethics.gov.state.md.us/Nov- Emp08.pdf, Maryland State Ethics Commission, Lobbying Employer Report 11/1/08-10/31/09. Available at: http://ethics.gov.state.md.us/Nov-Emp10.pdf. 52 Maryland State Ethics Commission. 30 th Annual Report. Available at: http://ethics.gov.state.md.us/Annual%20Reports/2008%20Annual%20Report.pdf, Maryland State Ethics Commission, 31 st Annual Report. Available at: http://ethics.gov.state.md.us/Annual%20Reports/2009%20Annual%20Report.pdf. 53 Department of Legislative Services. Audit Report Department of Transportation, State Highway Administration. Available at: http://www.ola.state.md.us/Reports/Fiscal%20Compliance/SHA12.pdf. 54 Maryland State Ethics Commission. 34 th Annual Report. Available at: http://ethics.gov.state.md.us/2012%20Annual%20Report.pdf.
Investigation into OMalley Brown Administration Relationships with DGA Donors Page | 15 More Lhan 14 bllls were flled durlng Lhe 2012 and 2013 sesslons Lo elLher repeal or reform Maryland's speed camera program. none of Lhem passed. 33
ALCCM]ALCCM AC: 536,0S0
ALCCM ls an lnLernaLlonal englneerlng, archlLecLural, and consulLlng flrm. ALCCM has made more Lhan $36 mllllon ln sLaLe conLracL spendlng from Maryland, mosLly from Lhe SLaLe Plghway AdmlnlsLraLlon and Maryland 1ransporLaLlon AdmlnlsLraLlon. 8eLween 2008-2009, ALCCM averaged less Lhan $1 mllllon ln sLaLe spendlng. Slnce 2010, sLaLe conLracLs wlLh ALCCM have averaged over $11.3 mllllon. ALCCM conLrlbuLed $11,030 and lLs AC donaLed $23,000.
55 Maryland General Assembly. Vehicle Laws Rules of the Road 2012. Available at: http://mgaleg.maryland.gov/webmga/frmMain.aspx?tab=subject3&ys=2012rs%2ffilecode%2fR5.htm, Maryland General Assembly, Vehicle Laws Rules of the Road 2013. Available at: http://mgaleg.maryland.gov/webmga/frmMain.aspx?id=R5&stab=01&pid=broadsubjpage&tab=subject3&ys=2013RS.