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If you were to seek two cases that stand as glaring testimony to the way in which the Jindal administration employs a double standard in addressing legal and ethical issues, you need look no further than the cases involving Murphy Painter and Jeff Mercer.

Though the men never met and while one was a state employee and the other a private contractor, together, the two represent the composite poster child for victims of political favoritism and corruption. Both fell prey to unethical behavior and of the way political priorities have been set by the Jindal administration for the past eight years.

We have chronicled the manner in which Jindal and his henchmen made Painter a scapegoat by firing him from his post as director of the State Office of Alcohol and Tobacco Control (ATC). We have shown how, when he refused to knuckle under and bend the rules for the benefit of Anheuser-Busch distributor Southern Eagle, SMG (the Louisiana Superdome management company), the Louisiana Stadium and Exposition District (LSED) Board, and Tom Benson, Jindal not only fired Painter but even tried (unsuccessfully) to prosecute him in federal district court on bogus criminal charges of computer fraud.

Not only was Painter acquitted of all (there were 42 counts, none of which stuck) charges, but the state then was required to repay Painter’s legal costs of $474,000.

Another embarrassment for Jindal: ex-ATC commissioner Murphy Painter wins defamation suit against his accuser

LouisianaVoice was the first—and only—news service to suggest (correctly, it turned out) that Painter, instead of a criminal, was the victim of a political scheme intended to remove him from his position after he refused to approve an incomplete application by SMG for a permit to erect a large tent at Benson’s Champions Square adjacent to Benson Towers across from the Superdome. The tent was to house beer sales by Southern Eagle on Saints game days. https://louisianavoice.com/2013/02/06/emerging-claims-lawsuits-could-transform-murphy-painter-from-predator-to-all-too-familiar-victim-of-jindal-reprisals/

Jindal executive counsel Stephen Waguespack, now President of the Louisiana Association of Business and Industry (LABI), insisted—twice—that the permit be expedited, Painter asked that he put his concerns in writing but Waguespack responded that he was far too busy to reduce his demands to writing (which would’ve left a paper trail, don’t you see).

Instead, Painter was simply fired and SMG got its permit. Of course, it was mere coincidence that the Benson family, SMG, its law firm, Southern Eagle and members of the LSED Board had combined to dump more than $207,000 into Jindal’s campaigns between 2002 and 2012.

Quick as the Jindal crowd was to administer justice (read reprisals) in the Painter case, it was painfully slow in ferreting out reports of corruption in one of the largest agencies in the state—the Department of Transportation and Development—and even slower in addressing those reports with the proper corrective measures. The fact is, nothing was ever done about reports of attempted shakedowns of a DOTD contractor and the subsequent harassment of that same contractor that eventually put him out of business.

It turned out to be an expensive oversight on the state’s part.

On Friday, a 12-person jury returned a unanimous verdict in which it awarded Jeff Mercer of Mangham $20 million, plus eight years (and counting) of judicial interest for allowing DOTD supervisors to condone demands of cash and equipment from Mercer by a DOTD inspector (we call that extortion where I come from; the inspector allegedly threatened Mercer with inspection problems with his work). Moreover, Mercer was able to prove that DOTD deliberately withheld payments for work performed by Mercer as payback for his whistleblowing, first reported by LouisianaVoice in April of 2012. https://louisianavoice.com/2014/04/09/contractor-claims-in-lawsuit-that-dotd-official-attempted-shake-down-for-cash-equipment-during-monroe-work/

Story of attempted contractor shakedown broken 2 years ago by LouisianaVoice results in $20 million verdict against state

Mercer had even taken his complaint to the governor’s office, but nothing was ever done. No referral to the Inspector General’s office. The IG, by the way, works directly for and answers only to the governor and was prompt enough to bring charges against Painter three years ago.

So, the question must be asked: why was the governor’s office not front and center in taking appropriate action on reports of extortion, threats of federal prosecution against Mercer, and refusals to pay for work performed by him?

Why was the demand for compliance so urgent in the Painter case and the concern so lacking in the Mercer case?

To paraphrase Jindal: two words.

Campaign contributions.

Benson, SMG, and members of the LSED Board were major Jindal campaign contributors. Mercer was not.

Benson and his associates were friends of Jindal and as such, they possessed massive political power that the governor could not ignore—nor did he wish to.

Mercer was a small contractor from the small North Louisiana town of Mangham, situated about halfway between Winnsboro and Rayville—and smaller than each of those. He was not influential.

He was, they thought, an insignificant little nobody who could be ignored because he had neither the influence nor the political muscle to make himself heard over the rattle of dinner plates at the governor’s mansion or over the lofty, self-serving campaign rhetoric about Jindal’s gold standard of ethics.

The administration, it turns out, committed the worst tactical error possible in warfare and politics: it vastly underestimated the determination of a little man when he is truly pissed and it woefully underestimated the indignation and ire of a 12-person jury upon their hearing of the injustice heaped upon one of their own by an uncaring bureaucracy and of the unscrupulous actions of those within that same bureaucracy.

And boy, does it ever feel good when the underdog wins one!

 

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Nearly two years ago, LouisianaVoice broke a story about a Mangham contractor’s claims that the Louisiana Department of Transportation and Development (DOTD) had bankrupted his company when it denied payments for his work. https://louisianavoice.com/2014/04/09/contractor-claims-in-lawsuit-that-dotd-official-attempted-shake-down-for-cash-equipment-during-monroe-work/

The reasons payment were denied? Because, contractor Jeff Mercer said, he resisted shake-down efforts by a DOTD inspector who demanded cash and equipment from him.

On Friday, after eight years of legal battles, Mercer won a unanimous $20 million judgment from a 12-person jury in 4th Judicial District Court in Monroe.

Work for which Mercer says he was not paid included:

  • Two projects on I-49 in Caddo Parish ($1.6 million);
  • A Morehouse Parish bridge project ($7.1 million);
  • Louisville Avenue in Monroe ($79,463);
  • Well Road in West Monroe ($50,568);
  • Airline Drive in Bossier City ($57,818);
  • Brasher Road in LaSalle Parish ($70,139).

While the Monroe News-Star gave substantial coverage to the court decision, LouisianaVoice was the first media outlet to give Mercer the time of day back in April of 2014 when we first learned of his troubles with DOTD. Monroe television station KTVE did a brief interview with Mercer following our initial story, but that was it—until yesterday’s decision. http://www.thenewsstar.com/story/news/local/2015/12/04/contractor-wins-20m-suit-against-dotd/76813444/

In our 2014 story, Mercer said that three of his employees filed sworn affidavits with the court in which all four say DOTD inspector Willis Jenkins demanded that Mercer either “put some green” in his hand or that Mercer place a new electric generator “under his carport” the following day.

One employee, John Sanderson, said he was approached by Jenkins who informed him that he “could make things difficult” on Mercer. “He indicated that this burden would not necessarily be on the Louisville Avenue project but on future jobs awarded to Jeff Mercer, LLC,” Sanderson said. “I replied, ‘You didn’t mean to say that,’” whereupon, Sanderson said, Jenkins repeated his threat. “During that conversation, I heard Willis tell Jeff that he ‘wanted green,’” Sanderson said.

Incredibly, Jenkins admitted making the comment but said it was a joke. Despite getting complaints about the shakedown attempt, DOTD never investigated the allegations. (Note to Jenkins: don’t joke like that in airports.)

Another Mercer employee, Bennett Trip, said in a signed statement that he heard Jenkins tell Mercer he “wanted some green.” He said he also heard Jenkins tell another Mercer employee that Jenkins, pointing to a generator in Tripp’s truck, said he “wanted one of those under his carport.”

Following complaints by Mercer, Jenkins was subsequently removed from the Louisville Avenue project by DOTD Engineer Marshall Hill who said it was not the first time he’d heard such claims about Jenkins. But Tripp said the shakedown continued when another state official told Mercer employees, “Y’all had my buddy removed and we’re going to make the rest of the job a living hell.”

Mercer claimed in his lawsuit there was collusion among DOTD officials to “make the jobs as costly and difficult as possible” for him. He told LouisianaVoice in April of 2014 that after receiving verbal instructions on the way in which one project was to be done, it was subsequently approved but later, DOTD officials, including defendant John Eason, advised that the work was not acceptable.

He said that DOTD officials provided false information to federal investigators; that he was forced to perform extra work outside the contract specifications; that a prime contractor, T.J. Lambrecht was told if he continued to do business with Mercer, closer inspections of his jobs would result, and that job specifications were routinely changed which in turn made his work more difficult.

Doughty said DOTD officials in Baton Rouge threatened his client with federal prosecution when he asked for payments for work he’d done. An FBI investigation initiated by DOTD was subsequently dropped.

Mercer eventually was forced to shutter the doors on his construction firm which had employed 20 to 40 people.

DOTD interoffice emails obtained by LouisianaVoice seem to support Mercer’s claim that he was targeted by DOTD personnel and denied payment on the basis that the agency was within its rights to “just say no.”

One email from DOTD official Barry Lacy which was copied to three other DOTD officials and which stemmed from a dispute over what amount had been paid for a job, made a veiled threat to turn Mercer’s request for payment “to the U.S. Department of Transportation’s Office of Inspector General.”

Still another suggested that payment should be made on a project “but never paid to Mercer.”

“I did everything they told me to do,” Mercer told LouisianaVoice. “But because I refused to allow one DOTD employee to shake me down, they put me out of business. They took reprisals and they ostracized me and broke me but now I’m fighting back.”

Both Mercer and his Rayville attorney David Doughty indicated they had reported the events to the governor’s office but no one in the Jindal administration, which has spent eight years touting its ethics record, offered to intervene or even investigate his allegations.

Not only did the jury hold DOTD liable for damages, but it also held four individual DOTD employees—Willis Jenkins, Michael Murphy, Eason and Barry Lacy—personally liable.

That, of course raises the obvious question of will there now—finally—be a criminal investigation of the four individuals? After all, the jury’s verdict centered on Mercer’s claims of extortion, bribery and plain old shakedowns in the purest sense of old-time Louisiana politics.

Granted, civil and criminal trials are vastly different. In a civil trial, a verdict can be reached on the lower standard of a “preponderance of the evidence” while criminal charges must be proven “beyond a reasonable doubt.”

In a civil suit, the plaintiff must only prove that there was a greater than 50 percent chance, based on all reasonable evidence, that the defendant committed the action that caused damages. In criminal matters, however, there is a higher standard. The prosecutor must prove that the accused committed the crime beyond a reasonable doubt.

But even with required higher standard of proof, the fact that a civil jury was unanimous in its decision should be sufficient to prompt at least a criminal investigation by the Ouachita Parish District Attorney’s office. Because federal funds were involved in the construction projects, and because Mercer was a contractor under the federal Disability Business Enterprise (DBE), a federal grand jury probe should ensue. “Who protects the DBE from the DOTD?” Doughty asked. “The people who are supposed to guard DBE companies are within DOTD itself (and) he didn’t get any help from them.”

Additionally, offenses committed under the funds from the American Recovery and Reinvestment Act (ARRA) of 2009 carry even stiffer penalties. ARRA funds were used on the I-49 projects.

The civil award puts the Louisiana Attorney General’s Office in an awkward position. The AG’s office defended the state’s interests in Mercer’s lawsuit and now that the jury has cited public corruption in its award, the office now finds itself in the unenviable position of being required to investigate public corruption in a case it had just defended in civil court. http://www.ag.state.la.us/Article.aspx?articleID=6&catID=8

“It’s been a long fight,” Mercer told the News-Star. To LouisianaVoice, he exulted, “We waxed their butts.”

He still has two more suits for more than $10 million in contractual losses pending in Baton Rouge district court.

Doughty told the News-Star that people “are tired of corruption and tired of reading about this type of thing” and that the jury “was sending a message.”

DOTD is expected to appeal the jury verdict to the Second Circuit Court of Appeal and if the state court decision is upheld, most likely the state will apply for writs with the Louisiana Supreme Court. If the decision is upheld in the higher courts, the State Legislature would then have to appropriate the payment.

All that means it could be years before Mercer sees a dime but judicial interest continues to run from the date the lawsuit was filed and the state ultimately could be forced to pay as much as an additional 50 percent.

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The numbers just don’t add up.

  • $130,000: The annual salary for the Louisiana governor;
  • 48,014: The number of broadcast TV ads for the four major candidates for governor through Nov. 16, 2015;
  • 24,007: The number of minutes of TV ads we were subjected to through Nov. 16 (at an average length of 30 seconds per ad);
  • 400: The total number of hours of TV ads for governor through Nov. 16;
  • 16.67: The number of days it would have taken you to watch every single ad through Nov. 16;
  • $17,333,920: The total cost of the 48,014 TV ads for the four major gubernatorial candidates (No wonder that Baton Rouge TV station fired the reporter who dared ask Vitter about his prostitution scandal; the station stood to lose lucrative ad revenue from the Vitter camp);
  • 13,654: The number ads purchased directly by David Vitter’s campaign (6,827 minutes, 113.8 hours, 4.7 full days of ads;
  • $3,816,660: Total cost of TV ads purchased by Vitter’s campaign;
  • 6,771: Number of ads purchased by Fund for Louisiana’s Future on behalf of Vitter (and make no mistake, while super PACs are prohibited from planning strategy or even consulting with a candidate, they can trash opponents freely and FLF trashed everyone but Vitter—3,385 minutes, 56 hours, 2.4 days);
  • $3,185,640: The cost of TV ads purchased by FLF through Nov. 16;
  • 9,259: Number of ads purchased by John Bel Edwards campaign (4,629 minutes, 77 hours, 3.2 days)
  • $2,675,600: Cost of TV ads purchased by John Bel Edwards;
  • 2,315: Number of TV ads purchased by Gumbo PAC on behalf of Edwards (1,157 minutes, 19.3 hours, .8 days)
  • $1,204,010: Cost of TV ads purchased by Gumbo PAC, the bulk of which was purchased after the Oct. 24 open primary;
  • 4,679: Number of TV ads purchased by Scott Angelle through Oct. 24 (2,340 minutes, 39 hours, 1.6 days)
  • $1,528,340: Cost of TV ads purchased by Scott Angelle;
  • 3,968: Number of TV ads purchased by Jay Dardenne through Oct. 24 (1,984 minutes, 33 hours, 1.4 days)
  • $1,285,380: Total cost of TV ads purchased by Jay Dardenne;
  • 7,368: Total number of TV ads purchased by smaller PACs (3,684 minutes, 61.4 hours, 2.6 days)
  • 0: The number of ads, the minutes, hours and days and the cost of TV ads in which any of the four candidates actually discussed their plans for resolving the multitude of problems facing Louisiana in public education, higher education, health care, prison reform, employment, coastal restoration and preservation, the environment, the economy, the state budget, or infrastructure.

And therein lies the real shame of the 2015 gubernatorial election.

With so much at stake for the state and with more than 16 full days of TV ad time in which to address our problems, not a word was said by any candidate about what he intended to do to turn this state around after eight years of the amateurish experimental governance of one Bobby Jindal that has brought us to the brink of ruin.

I repeat. Not a single word.

Instead, we were treated to a never-ending barrage of:

  • David Vitter is a snake for his tryst(s) with one or more hookers and is not only despised in the U.S. Senate but is largely an ineffective senator;
  • David Vitter betrayed his family 15 years ago but has been forgiven by his wife and has fought valiantly in the U.S. Senate on behalf of Louisiana’s citizens;
  • John Bel Edwards is joined at the hip with President Obama and desires to turn 5,500 hardened Angola convicts loose to prey on our citizenry;
  • John Bell Edwards has an unblemished record of achievement as evidenced by his graduation from West Point and his subsequent leadership role in the U.S. Army’s 82nd Airborne and has fought Bobby Jindal’s disastrous programs for eight years.

As the voters of this state who have to make a decision tomorrow (Saturday, Nov. 21), we are tired—tired of the negative campaigning, tired of the distortions of records and outright lies about opposing candidates, tired of the endless succession of robocalls that give us not a live person with whom we can debate issues, but a recording that pitches one candidate’s positives over another’s negatives. (It’s just not the same when we curse and scream our frustrations at a recording.) We deserved better from all the candidates. We got a campaign long on accusations, name-calling and finger-pointing and one woefully short on solutions.

And lest readers think I am directing all of my disdain at the gubernatorial candidates, let me assure you I am not. I have equal contempt for the legislature, PACs and corporate power brokers.

Consider for a moment how approximately $31 million (that’s the total cost of this year’s governor’s race when all media advertising—radio, newspaper, robocalls and mail-outs, along with campaign staff and assorted expenses—are factored in) could have been put to better use. http://theadvocate.com/news/acadiana/13971699-123/louisiana-governor-race-spending-close

True, $31 million isn’t much when the state is looking at yet another $500 million budgetary shortfall, but every little bit helps. These donors, so concerned about the governor’s race, could, for example, feed a lot of homeless people or purchase quite a few text books for our schools. I’m just sayin’….

Most of that money, of course, is from PACs, the single worst plague ever visited upon a democratic society. PACs, with their unrestricted advertising expenditures, along with large corporate donors who also manage to circumvent the campaign contribution ceilings, remove the small contributors and the average citizen from the representation equation.

And why do they pour money into these campaigns? For benevolence, for the advancement of good, clean, honest government.

You can check that box no. It’s for the same reason they pay millions of dollars to lobbyists.

If you really want to know their motivation, just take a look at the list of state contracts http://wwwprd.doa.louisiana.gov/latrac/contracts/contractSearch.cfm or the impressive list of appointments to state boards and commissions.

Our thanks to the Center for Public Integrity for providing us with the television advertising cost breakdowns for the candidates and the various PACs. http://www.publicintegrity.org/2015/10/01/18101/2015-state-ad-wars-tracker

 

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Interspersed in all the venomous political rhetoric in the gubernatorial campaign that is now moving toward its merciful final week are some real issues that affect our lives and which should warrant closer inspection by the voting public.

Unfortunately, given the public’s taste for voyeurism and salacious gossip, that probably won’t happen. Besides, time is short and the sordid half-truths, distortions and details of political black ops are just heating up. There just isn’t time for the things that matter.

But at least one group is taking U.S. Sen. David Vitter to task for a letter he wrote last April to U.S. Army Corps of Engineers Commander Lt. Gen. Thomas Bostick and Assistant Secretary of the Army for Civil Works Jo-Ellen Darcy.

In that otherwise routine five-page letter, dated April 16, 2015, Vitter addressed a number of issues concerning levees, flood control, storm surge protection, past due payments from the Corps to the State of Louisiana for freshwater diversion projects, a request to complete the Southeast Louisiana Urban Flood Control Project (SELA) in Orleans, Jefferson and St. Tammany parishes, deauthorization of the West Pearl River Navigation Project, a request for increased negotiation efforts to approve the Lower Mississippi River Management proposal, and bank stabilization along the Ouachita River in north Louisiana.

Buried at the bottom of page three of the letter was item number 7: Helis Oil and Gas Permit MVN (Mississippi Valley New Orleans)-2013-02952-ETT.

Issue: “The aforementioned permit application is currently awaiting approval within MVN, but has stalled due to several pending lawsuits,” Vitter’s letter said. “The State of Louisiana, Department of Environmental Quality issued the water quality certification (WQC 140328-02) on March 19, 2015. Issuance of the 404 permit is the last remaining action needed to begin construction of the test well.”

Request: “Immediately approve and issue the 404 permit.”

VITTER LETTER TO CORPS

In his April 16 letter, Vitter did what he does best: intimidate with not-so-subtle threats.

“As the U.S. Army Corps of Engineers moves forward with leadership transitions and promotions in the coming months, I’d like to take this opportunity to ensure that you—as the two primary Corps leaders—continue strengthening your commitment to improve communication and issue resolution with non-Federal stakeholders who depend on the Corps to provide necessary flood protection, reliable navigation, and restored ecosystems,” he wrote.

“…However, it’s critical that Corps leadership understand there remain several significant Louisiana issues that need to be addressed and resolved in an expeditious manner. In light of those issues, I can’t support the transition or promotion of new leadership until I know that a constructive approach will be taken to address and resolve these serious problems.”

As if on cue, the Corps on June 8 approved the permit application by Helis Oil & Gas Co. http://www.nola.com/environment/index.ssf/2015/06/wetlands_permit_approved_by_fr.html

Vanishing Earth, a new political blog that concentrates on environmental issues, obtained the Vitter letter to the Corps that contained Vitter’s heavy-handed approach to resolving issues, particularly the approval of the Helis permit.

That permit, since approved, will allow Helis to drill an exploratory well for the purpose of oil drilling and controversial hydraulic fracking in St. Tammany Parish. Parish residents have resisted fracking in St. Tammany and have even filed a lawsuit in district court to stop the practice there because of legitimate concerns about air and water pollution, damage to the aquifer that supplies drinking water, and the industrialization of the parish.

The irony is that St. Tammany is considered a strongly Republican parish and represents one of Vitters’ strongest areas of support.

But, as is always the case in politics, money speaks much louder than loyalty to constituents and Helis has seen to it that Vitter’s campaigns, both federal and more recently, state, are remembered fondly.

On May 8, less than a month after Vitter wrote his letter to the Corps, Helis made a $5,000 contribution to Vitter’s gubernatorial campaign. Additionally, on that same date, Helis CEO David Kerstein made an identical maximum allowable contribution of $5,000. Then, on Nov. 6 of this year, less than two weeks after the first primary, Helis chipped in an additional $5,000. The company also contributed $15,000 in three separate contributions to lieutenant governor candidate Billy Nungesser.

https://coraweb.sos.la.gov/CommercialSearch/CommercialSearchDetails.aspx?CharterID=442768_VAE52

 

Moreover, Kerstein contributed an additional $7,500 to Vitter’s U.S. House and Senate campaigns from 2000 to 2008, according to Federal Election Commission records. Corporations are prohibited from contributing to federal campaign. http://docquery.fec.gov/cgi-bin/qind/

KERSTEIN, DAVID New Orleans ATTORNEY  VITTER FOR CONGRESS 05/01/00 1000.00
KERSTEIN, DAVID New Orleans SELF VITTER FOR CONGRESS 09/22/03 1000.00
KERSTEIN, DAVID New Orleans SELF DAVID VITTER FOR US SENATE 07/07/05 2000.00
KERSTEIN, DAVID New Orleans SELF VITTER FOR US SENATE 02/21/08 300.00
KERSTEIN, DAVID New Orleans SELF DAVID VITTER FOR US SENATE 02/21/08 2200.00
KERSTEIN, DAVID New Orleans SELF/ATTORNEY VITTER FOR CONGRESS 04/18/01 1000.00

Helis apparently is not an equal opportunity donor; no contributions could be found by the company or its CEO to Democrats John Bel Edwards or Nungesser’s opponent Baton Rouge Mayor Kip Holden.

What David Vitter is essentially saying in his letter to Secretary Darcy and Lieutenant General Bostick is that if they do not perform certain acts, issue the permit, then he will punish them by taking away something of personal value to them which, in this case, are the “transitions and promotions,” wrote Vanishing Earth publisher Jonathan Henderson. “In other words, he blackmailed them.” http://vanishingearth.org/2015/11/05/senator-vitter-corruption-reaches-st-tammany-parish-fracking-fight/

Henderson is encouraging his readers to call on the U.S. Senate Select Committee on Ethics “to immediately investigate Senator David Bruce Vitter.”

Additionally, one source said some residents of St. Tammany were considering filing a complaint with the State Board of Ethics. LouisianaVoice inquired of the state board whether or not such a complaint had been filed. This was the response we received:

In response to your public records request of Nov. 12th, please be advised that all complaints and documents prepared or obtained in connection with an investigation are deemed confidential and privileged pursuant to R.S. 42:1141.4 K&L which also provides that it is a misdemeanor for any person, including the Board’s staff, to make any public statement or give out any information concerning any confidential matter.

LouisianaVoice has begun an investigation into fracking operations in Lincoln Parish as well. Residents there are concerned about the drain on the Sparta Aquifer which supplies drinking water to several north Louisiana parishes. We will bring you more details on those operations as we receive them.

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“It turns out we were boondoggled on that.”

—State Sen. Dan Claitor (R-Baton Rouge), commenting on the “deliberative process” exemptions pushed through the legislature in his 2008 “ethics reform” package, as quoted by the Center on Public Integrity’s 2015 state rankings.

“Jindal’s ‘gold standard’ is riddled with loopholes and cynical interpretations by the governor and other state officials.”

—The Center for Public Integrity, criticizing Bobby Jindal’s “gold standard” of ethics, in its 2015 state rankings report.

 

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