LobbyComply Blog

Q. Many of the state legislatures I lobby are currently in session. Does this affect when my lobbying reports are due?

A. While some states have reporting schedules that do not vary from year to year, others tie their lobbyist reporting schedules to their legislature’s activity. Currently, 11 states have reporting schedules that vary to some degree with their legislative sessions: Alaska, Arkansas, Connecticut, Georgia, Hawaii, Idaho, Mississippi, Montana, Nebraska, Nevada, North Carolina, and Rhode Island. Some of these states require additional reports during the legislative session, while others tie reporting dates to the session’s adjournment.

For example, Georgia requires legislative lobbyist reports twice per month while the Legislature is in session. Reporting frequency decreases to once per month once the Legislature adjourns. Connecticut, Arkansas, and Alaska all require monthly legislative lobbyist reports while their legislatures are in session.

Other states have reports tied to the official adjournment of the legislature. Mississippi requires an end-of-session report 10 days after the Legislature adjourns sine die. Some legislatures, such as Mississippi and Nebraska, have the flexibility to change their planned adjournment date, in which case a report may be due earlier or later than previously announced. It is also important to note only official adjournment dates affect the reporting schedule. State legislatures concluding business for the year, but not officially adjourned, may still require a lobbyist to use the “in session” reporting schedule. Rhode Island, for example, requires monthly reports only when the Legislature is in session, but the Legislature does not officially adjourn until January of the following year.

Special legislative sessions may also trigger a lobbying report. States such as Nebraska and Hawaii require an additional report following the adjournment of a special legislative session. In states requiring special session reports, a report may be required even if the full legislature did not convene in special session.

Each jurisdiction’s statutory reporting schedule is different. Be sure to know your state’s reporting schedule and whether a legislative session will change your requirements.

 

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. With the start of the New Year, are there any changes I should be aware of in political contribution limits?

 A. Aside from changes as a result of new legislation, the most common adjustment of contribution limits is indexing for inflation.  Typically, adjustments are made biennially for inflation according to the Consumer Price Index.  The Consumer Price Index is calculated by the United States Department of Labor, Bureau of Labor Statistics.

This concept was addressed by the United States Supreme Court in Buckley v. Valeo (1976).  The court allowed federal contribution limits to be adjusted upwards at the beginning of each calendar year by the average percentage rise in the Consumer Price Index for the 12 preceding months.

The principal behind this is quite simple:  it is based on the recognition that the cost of campaigning steadily increases each year based on the increase to cost of living.  Campaign fliers, mailers, yard signs, and media buys do not cost the same in 2013 as they do in 2015.

This year, California adjusted its contribution limits for the 2015-2016 biennium.  In doing so, corporate contributions limits for general assembly candidates increased from $4,100 per election to $4,200.  Washington adjusts its limits in even-numbered years, so the 2014 corporate contribution limit of $950 per election for state legislative candidates will remain the same for 2015.   Illinois adjusts its limits in odd-numbered years, so the 2014 corporate contribution limit of $10,500 per election cycle for legislative candidates will increase to $10,800.

Finally, the indexing of contribution limits usually results from amendments to a state’s administrative code as opposed to its statute.  In order to ensure compliance, a contributor should review both of these sources.

 

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. I am a registered lobbyist and have been asked to serve on a state board. Are there any laws preventing me from serving?

A. Generally, there are no laws preventing a registered lobbyist from serving on a state board or commission. However, many states have laws regulating the board service of registered lobbyists.

For example, in South Carolina a lobbyist is prohibited from serving as a member on any state board or commission. Illinois also has a general prohibition; however, their prohibition extends to the spouses and immediate family members of a lobbyist who are living at home. Such individuals are prohibited from serving on a board, commission, authority, or task force authorized by state law or executive order.

Other states only prohibit a registered lobbyist from serving on certain boards or commissions. In Ohio, both legislative and executive branch lobbyists are prohibited from serving on the Ohio Elections Commission. In New York, lobbyists are prohibited from serving as a member of the Joint Commission on Public Ethics and the Legislative Advisory Council.

Some states only prevent lobbyists from serving on boards that could possibly benefit themselves or their employers. In Tennessee, lobbyists are prohibited from serving as a member of a board, commission, or governmental entity with jurisdiction to regulate the business endeavors or professional activities of any employer of the lobbyist. In Wisconsin, lobbyists are prohibited from serving on a state board or commission related to who and what they are lobbying.

Every jurisdiction’s rules on lobbyists serving on state boards and commissions is different. Before agreeing to serve on a board or commission, you should consult that jurisdiction’s ethics commission.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. I am a registered lobbyist, and I receive a contingency fee as part of my compensation.  Should I be worried?

A. In a majority of jurisdictions, there are express provisions prohibiting registered lobbyists from receiving a contingency-based fee.  Every jurisdiction treats this issue differently, and there is a wide range of statutory oversight.  This issue becomes especially problematic for in-house employees who wear dual hats—you may be required to register as a lobbyist because of your interactions with government officials on behalf of your company, but you may additionally be involved in sales work.

In some jurisdictions, including Louisiana, New Hampshire, and Wyoming, there are no prohibitions whatsoever. Other jurisdictions, such as Nevada, only narrowly prohibit contingency fees for influencing the outcome of legislative action. However, there are even more restrictive bans in other jurisdictions, including Florida and Arkansas, that not only prohibit registered lobbyists from receiving a contingency-based fee, but prohibit this for anyone involved in government procurement, absent meeting a limited exception for salespersons or sales agents.

New York is one example of a jurisdiction banning lobbyists from receiving contingency fees, although the state does have a well-defined registration exception for individuals who qualify as commissioned salespersons. To qualify, the primary purpose of employment must be sales, other lobbying activity must be limited, and the individual must meet specific requirements regarding the percentage of the commission. Another example is North Carolina, where the contingency fee ban is not applicable to an individual doing business with the state whose regular remuneration includes commissions based on these types of sales.

Bottom line, if you are required to register as a lobbyist, you must be aware of the laws applicable in your jurisdiction if you receive a contingency-based fee for your work.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. I provided a state legislator with a permissible gift.  I will be sure to include it on my next report.  Is there anything else I need to know regarding proper disclosure of this expenditure.

A. There are sometimes additional disclosure requirements related to an expenditure on a covered state official or employee.  You should be sure to consider two possibilities: a notification to the official or a supplemental report in addition to your routine lobbying report.

A number of states have a notification requirement if you are going to list the name of a covered public official on your lobbying report.  For example, Illinois actually requires two notifications.  You must provide the official with a contemporaneous notification at the time of the expenditure, and a post- notification is required within 30 days after the report has been filed.  In other jurisdictions, the notification is related to whether you must itemize the expenditure or list the official’s name on your report.  In Arkansas, you must list the state official’s name if payment for food (including beverages), lodging, or travel is in excess of $40.  Once the official is named on your report, you must provide him or her with a notification of this at least seven working days prior to the filing of your report.  Pennsylvania imposes a yearly aggregate threshold on the listing of an official on the principal’s lobbying report and corresponding required notification.  This threshold is $250 per calendar year for gifts and $650 per calendar year for transportation, lodging, and/or hospitality (which includes food and beverage).  Please keep in mind that notifications are not filed with the state, but sent to the official named on your report.

Some jurisdictions require an additional report to be filed with the state when making certain permissible expenditures.  For example, if you invite all members of a Maryland legislative unit to a meal or reception, you must extend a written invitation to all members of the legislative unit and register the meal or reception with the Maryland Department of Legislative Services at least five days before the date of the meal or reception.  You must then report the details of the meal or reception to the Maryland Ethics Commission within 14 days after the date of the meal or reception.  In Indiana, you must file a report within 15 days if you make a gift or gifts to a legislative person if the value of the gift or gifts equals $50 or more in one day or together totals more than $250 in a reporting year.

Proper disclosure of a permissible expenditure can include additional steps.  Be sure to check with your jurisdiction’s ethics agency to ensure all disclosure requirements are met.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. Do gift laws preventing registered lobbyists and employers from giving gifts to public officials, also prohibit gifts to the family members of public officials?

A. Generally, in states that feature a prohibition on lobbyists giving gifts to public officials or employees, the prohibition will extend to members of the public officials’ immediate family. However, immediate family is usually a defined term and will vary by jurisdiction.

For example, Alabama law prohibits lobbyists and employers of lobbyists from offering or providing a thing of value to a public employee, public official, or family member of a public employee or public official. The state defines a family member of a public employee as a spouse or dependent. A family member of a public official is defined as the spouse, dependent, adult child and his or her spouse, spouse’s parent, and siblings of spouse and their respective spouses.

In Kentucky, the General Assembly just passed House Bill 28, which extends the prohibition on gifts to family members of legislators or candidates. Effective July 14, 2014, registered legislative lobbyists will be prohibited from giving gifts to spouses or children of legislators or candidates for General Assembly.

In Pennsylvania, gifts are also prohibited to immediate family members of public officials, employees, or candidates for public office. They interpret immediate family members to include spouses, children, parents, and siblings.

However, not all states include family members in the gift prohibitions. Minnesota’s gift prohibition applies to public officials, employees of the Legislature, and local officials, but it does not extend to their family members.

Before giving a gift to a public official or employee, you should consult the jurisdiction’s ethics commission. Do not expect officials or their family members to know the applicable laws.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. My company is planning to get more engaged on the local level. What are some things I need to consider?

A. There are many considerations for a company prior to engaging on the local level. To ensure you are in compliance while interacting with municipal officials, it is important to check whether the municipality has a lobbyist registration ordinance, gift rules, or a pay-to-play ordinance. These provisions, if present, will impact your ability to engage with municipal officials. Requiring lobbyists to register on the municipal level is a quickly emerging trend throughout the U.S. This trend is not just impacting individuals who engage in what is generally regarded as lobbying, but also affecting permitting, sales, and other business functions.

For example, in San Jose, California, lobbying includes attempting to influence the proposal, drafting, development, adoption, recommendation, or approval of any contract, permit, license, or hiring action. The proliferation of these types of provisions has made it such that applying for a building permit, attempting to contract with the state, or even attempting to influence the selection of a candidate to be hired may be considered lobbying depending on the jurisdiction and the circumstances. The broad application of lobbying ordinances in municipalities merits attention and consideration prior to engaging to ensure registration is completed if needed.

An additional consideration is whether your company belongs to any trade associations with a lobbying presence in the municipality. Trade associations can help facilitate introductions to key players. However, you must still pay attention to the lobbyist registration threshold. It is a common misconception that being in the presence of a registered lobbyist negates an individual’s registration requirement. This is very rarely the case and should not be relied upon as a general rule. For more information about local level lobbying, please visit our website, www.stateandfed.com.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

 

 

Q. I am a registered lobbyist and on occasion I use my personal funds to make political contributions, as does my spouse.  Are there states that prohibit such activity?

A. A lobbyist, simply by virtue of his or her profession, may be prohibited from making personal political contributions.

There are nine states that either prohibit or limit a registered lobbyist’s ability to contribute to state candidates. In most instances, a lobbyist’s ability to contribute to political parties and ballot measure committees remains intact.

Kentucky, North Carolina, and Tennessee impose an outright ban on lobbyists’ contributions. In Connecticut and Massachusetts, there isn’t an outright ban, but instead a monetary limit of $100 and $200, respectively. In Connecticut, the limitation extends to family members of lobbyists.

Perhaps the state most mired in “red tape” is Alaska. A lobbyist may not contribute to a candidate for office in a district outside the lobbyist’s own voting district. This prohibition continues for one year after a lobbyist’s registration or renewed registration date. A lobbyist who contributes to a legislative candidate must file a Lobbyist Report of Contributions to Legislative Candidates (Form 15-5A) within 30 days after making the contribution.

In some states, lobbyists may not contribute to state candidates or officeholders if registered to lobby the candidate’s or officeholder’s agency. Such is the case in California and South Carolina.

Finally, as a registered lobbyist you should be aware there are numerous states that impose a lobbyist ban during the legislative session. Be sure to review the relevant statutes, regulations, and guidelines.

 

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

 

Q. When must direct corporate political contributions be disclosed?

A. At least 15 states require some sort of corporate contribution disclosure, whether it be on a campaign finance statement or lobbyist/employer disclosure report.

Campaign finance reports typically require an annual aggregate threshold be exceeded before a report is triggered.  For example, in Utah, direct corporate contributions must exceed $750 in the aggregate per calendar year before a report is required.  In Georgia, the threshold is $25,000.  In Nebraska, a corporation making more than $250 in direct corporate contributions must file a report within 10 days after the end of the calendar month in which the contribution is made.

Conversely, lobbying reports typically start at “dollar one.” In New Mexico, lobbyists are required to report all political contributions made by the employer, regardless of amount.  The same holds true in South Carolina and New Hampshire.

And then there’s California—a hybrid of both campaign finance and lobbying disclosure.  Direct corporate contributions must exceed $10,000 in the aggregate per calendar year before a campaign finance report is due.  However, until this threshold is exceeded, corporate political contributions must be disclosed on the lobbyist employer’s quarterly report.

As always, the best practice is to track all corporate political contributions in the event disclosure is required.   Likewise, you need to familiarize yourself with the reporting requirements in those jurisdictions where your company is making contributions.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. Our company, a federal registrant, is a member of numerous outside organizations.  We join many of these organizations for reasons other than their lobbying/government relations activities.  Even so, some of the organizations allocate a percentage of dues toward lobbying activities.  If we are not actively engaged in supporting the organization’s lobbying efforts, do we still need to include the lobbying allocation in our good faith estimate of lobbying expenditures.

A. Yes. The disclosure requirement in this regard is not dependent on the rationale behind why a registrant joins any given membership organization.  The reporting mandate requires every registrant to track and ascertain what portion, if any, of all dues it pays is used for lobbying activities.  The registrant is then required to include those allocations in their total lobbying expenses reported.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. I am a registered lobbyist with a personal relationship with a state legislator.  I would like to give her a gift for a special occasion.  Is this permissible?

A. As a registered lobbyist, you should always be aware of the restrictions placed on you for providing things of value to a state official.  A number of jurisdictions have strict “no gift” laws in place.  Wisconsin prohibits a lobbyist from providing things of pecuniary value to a legislator with very limited exceptions.

A gift can be permissible based on the personal relationship between the lobbyist and the legislator.  Texas and Florida allow gifts between a registered lobbyist and a legislator if they are related to a certain degree.  Please note that jurisdictions can examine the circumstances of the gift such as the extent of the relationship between the lobbyist and the legislator.  The lack of a history of gift giving between the parties or evidence of a personal relationship may render the gift impermissible.  The federal “friendship” exception also does not apply to state and local jurisdictions.

A registered lobbyist may be allowed to give a gift based on the special occasion or reasoning behind it.  In Massachusetts, a lobbyist may give a legislator gifts on certain occasions of religious or personal significance.  Connecticut allows gifts for certain major life events.  Be sure to confirm if any occasions are excluded.  Massachusetts does not consider a birthday to be an occasion of personal significance!

A gift may not be prohibited even if you are a registered lobbyist.  Confirm whether an intended gift is permissible with your state’s ethics office.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. I am a registered lobbyist in five jurisdictions and just moved into a new house.  Is there anything I need to do to stay in compliance?

A. It is easy to be overwhelmed by all of the tasks associated with a move.  However, it is important to notify the jurisdictions in which you are registered of your new address as soon as possible as this affects both your lobbyist registration and reports.

For example, in Florida, a lobbyist must amend his or her registration within 15 days of a change. Additionally, registration renewal must occur on forms distributed by the state directly to the address listed on the lobbyist registration on file.  Without amending the registration to include a current address, the lobbyist will not receive the registration renewal materials.

In some states, a lobbyist can face penalties for failure to amend a registration upon a change of address.  In Arizona, a registrant must notify the secretary of state within five business days after any change to the information in the registration statement. If the state determines a violation has occurred, and the lobbyist fails to comply with the request to amend the registration, a hearing will occur and the state may issue a fine of up to $1,000.

To avoid facing penalties, know the registrations provisions of your jurisdictions.  In most cases, the jurisdiction will require you to provide an updated address.  Whether this process requires a phone call or amendment to your existing registration will vary. When in doubt, contact the overseeing agency to clarify the requirements.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. My company is involved in an event where a meal and other gifts may be provided to public officials.  How do I know if this is permissible?

A. You must consider a number of issues any time you want to provide a gift to a public official.  In addition to consulting your company’s policies, you should answer the following questions:

• Is it a gift?  States often have exceptions to the definition of gift.  Arizona does not consider an expenditure for food, beverage, travel, or lodging to be a gift under state law.  A number of states do not consider things of value provided on the basis of a personal relationship or items of de minimis value to be gifts.
• Who is the giver?  Lobbyists are often subject to more stringent gift restrictions than non-lobbyists.  Florida prohibits any gifts from lobbyists to state officials and employees with very few exceptions.  However, if you are not registered as a lobbyist, you are permitted to give any gift if it is not given to influence any official action.  California imposes different gift limits; the limit is $10 or less per month for lobbyists and $440 or less per year for non-lobbyists.  Additional restrictions could apply if your company is a state contractor.  Connecticut does allow limited gifts from lobbyists and non-lobbyists.  However, state contractors must certify no gifts were made under certain circumstances.
• Who is the recipient?  The permissibility of a gift can depend on the branch of government or the seniority of the official or employee.  Maryland legislators may only accept food and beverage from lobbyists in very limited circumstances.  Executive branch officials may accept food and beverage if they are in the presence of the lobbyist. Delaware only restricts cabinet secretaries, division directors, and the governor’s professional staff from accepting gifts from lobbyists.

If you are anything less than 100% sure a gift is permissible, consult the state’s ethics agency.  Do not ask the official or employee involved!  He or she may not be familiar with the nuances of the state’s gift law.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. We’ve had some disagreement internally within our organization – please help. As a federal registrant employing in-house lobbyists, are we only required to report the time and expenses associated with our “registered” lobbyists.

A. It’s a good question. The answer to which often gets lost amongst the efforts to report lobbyists’ activities. Federal registrants are certainly required to make best efforts to track, capture, and report the lobbying activities and expenses of those employees who meet the 20% threshold standard (lobbyist employee). In addition, registrants are equally required to track, capture, and report expenditures associated with employees who do not meet the 20% threshold but still engage in lobbying activities during the course of the quarter (non-lobbyist employees.) The names of non-lobbyist employees are not included on the report and neither is information related to what issues they addressed or contacts they made. That said, the Secretary of the Senate and Clerk of the House have consistently advised that all employee time spent engaged in lobbying activities should be included when determining an organization’s lobbying expenses, even when the employee(s) does not meet the statutory definition of being a lobbyist. In line with the best efforts standard, then, it is important to have in place reasonable, demonstrable processes to capture both lobbyist and non-lobbyist activities.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.