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.

Q. I am an in-house employee; however, I am not a registered lobbyist in my responsible state. Although I engage in lobbying activities from time to time, I do not meet the state’s registration threshold. However, other people from my company are registered. Do I have to disclose my expenditure and/or compensation for lobbying activities on company reports?

A. In some jurisdictions, although you are not a registered lobbyist, you may be required to include your expenditure and/or compensation information on company lobbying disclosure reports. There are 27 states requiring some level of reporting for non-lobbyist employees, including Arkansas, California, Georgia, Illinois, Indiana, Massachusetts, Michigan, and Wisconsin.

Every state treats non-lobbyist reporting differently. For example, in California, you are only required to include your compensation and reimbursed expenditures on a quarterly employer report if you spend more than 10% or more of your compensated time in a calendar month engaging in lobbying activities. In states such as North Carolina, Illinois, or New Jersey, permissible expenditures on behalf of public officials must be reported by the employer or registered lobbyist.

In the above jurisdictions where your company has an active lobbying presence, monitoring potential reportable activity is incredibly important. Although your level of activity may not necessitate registration in a state, you must become familiar with the state’s non-lobbyist reporting requirements, and carefully track activity, which may include the following:

• Compensation for lobbying activity;
• Personal reimbursed expenditures for food, travel, or lodging in connection with lobbying activity;
• Expenditures on behalf of public officials or employees;
• Sponsorships for events where public officials or employees will be present and receive a benefit; and/or
• Subject matter lobbied, including agencies contacted.

In sum, as you are reviewing your potential lobbyist registration obligations for the new year, it is just as important to review your potential reporting obligations as a non-lobbyist employee in the jurisdictions where your level of activity does not require registration.

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 who will be having a colleague accompany me to meetings with legislators. Should I be concerned with registration and/or reporting for my colleague?

A. Many individuals believe the presence of a registered lobbyist relieves a person of any disclosure requirements. Most jurisdictions have no exemption for this scenario. Lobbyist registration and reporting is required upon meeting the registration threshold.

Some jurisdictions do have limited exemptions from lobbyist registration requirements. In California, these particular actions would not be counted towards the lobbyist registration threshold. You do not engage in direct communication when you meet with a covered official in the company of a registered lobbyist retained by you or your employer. In Idaho, corporate employees need not register if the corporation is registered as a lobbyist and designates one or more of its employees as the corporation’s official lobbyist and the designated lobbyist is also registered.

Even if registration is not required, you must consider the applicable reporting requirements. A number of jurisdictions require your employer to report all lobbying expenses, which include those for employees who lobby but do not meet the registration requirements. Wisconsin specifically requires the disclosure of pro-rata compensation and expenses for these non-lobbyist employees. In Idaho, even if you are not required to register as discussed above, expenditures made by unregistered corporate employees in a lobbying effort must appear on the applicable reports.

Whenever you lobby state officials, consider all disclosure and compliance requirements, especially those related to the reporting for a non-lobbyist employee.

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 who was asked to make an in-kind contribution on behalf of my company for an event to be held by a state political party. Is this permissible?

A. As a registered lobbyist, your contributions may be governed by two sets of laws: campaign finance and lobbying.

First, you must determine whether the state would consider the in-kind payment to be a contribution or a lobbying expenditure.

If the in-kind payment is determined by the state’s governing body to be a contribution, then this contribution must be compliant with the campaign finance laws. You must first determine if the amount and source of funding are permissible. Assuming permissibility of the contribution, potential restrictions on contributions facilitated by lobbyists and the reportability of contributions facilitated by lobbyists will need to be reviewed. In some states, once the in-kind contribution is made, the lobbyist and the lobbyist’s principal may not have additional involvement with the planning of the event, but will be permitted to attend.

Where the state considers the in-kind payment to be a lobbying expenditure and not a political contribution, you must ensure that the expenditure will not exceed the state’s gift limit. The pro-rata share of the expenditure attributable to all public officials who attend the event may be reportable on a disclosure report.

While this analysis will vary from state to state, it is important to be cautious when making in-kind payments.

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 interested in making contributions to state candidates in the upcoming elections. Does the fact that I’m a registered lobbyist affect my ability to contribute?

A. In certain states, being a registered lobbyist does impact your ability to give to a political candidate, ranging from a total ban on political activity, to simply having to report the contributions on your periodic reports.

In Arizona, Colorado, Iowa, Kansas, New Mexico, and Oklahoma, lobbyists may not make contributions to lawmakers while the state legislature is in session. Fortunately, in the context of the upcoming elections, most states have adjourned sine die. In California, a lobbyist may not make a contribution to a candidate for any office for which the person is registered to lobby. Because most lobbyists are registered to communicate with the legislature, this ends up being nearly a total ban on contributions to legislators. Similarly, in Kentucky, a lobbyist registered with the legislative branch may not make a contribution to a lawmaker. In Alaska, a lobbyist is only allowed to contribute to candidates for office within his or her voting district.

There are several states in which lobbyists are allowed to make contributions, but must disclose the donations on their lobbyist reports. Massachusetts, New Hampshire, New Mexico, Rhode Island, and Washington are examples.

Some states have unique provisions for politically-active lobbyists. In Pennsylvania, for instance, a lobbyist who makes political contributions must register and report in the same manner as PACs. Minnesota lobbyists must include their registration numbers in the memo section of campaign contribution checks.

If you or a member of your team would like to make a campaign contribution in a state in which you are registered, please contact a member of the State and Federal Communications Compliance Department for fact-specific guidance.

(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 has existing, ongoing contracts with various state agencies. Sometimes, I have discussions with employees of these agencies (technicians, managers, and directors) regarding their use of my company’s products. Do I have to register and report as a lobbyist?

A. As a general rule for state-level lobbying, as long as discussions are limited to the evaluation and servicing of existing contracts, this type of activity will not typically be considered lobbying, the definition of which often includes influencing executive branch action.

However, in some states, executive branch action encompasses the state’s procurement process, including decisions to modify, extend, expand, or renew existing contracts. Once discussions of this type occur, lobbyist registration and reporting may be triggered, depending on the state’s specific time and expenditure thresholds. Every state has different thresholds, and requires its own specific analysis.

Here are some important things to track when evaluating whether you need to be registered in a specific jurisdiction:

1. Who are you talking to? In jurisdictions requiring registration for procurement lobbying, registration may hinge on whether the agency employee is considered a covered official. In some states, covered official is broadly defined to include all employees, while other jurisdictions require registration and reporting for attempting to influence directors or other major decision makers.
2. How many contacts have you had with the agency? How much time have you spent? Some jurisdictions require registration before the very first contact, while other jurisdictions require registration and reporting once you spend a certain amount of time engaging in procurement lobbying. You may need to determine your pro-rata share of compensation for time you have spent preparing for and engaging in the communication.
3. Is there a pending RFP or a contract renewal on the horizon? In some jurisdictions, the timing of your conversation with an agency official is important. Is there a pending decision before the state agency which would affect your company’s bottom line? If so, registration as a lobbyist may be required before engaging in communication which could be perceived as influencing the decision making process.
4. Did you expend any money on behalf of agency employees or officials? In some jurisdictions, registration may be triggered by expenditures on behalf of employees or officials.

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 developed support for an issue by asking the public to contact and influence their legislator. Should I be concerned with lobbyist disclosure requirements?

A. You are engaging in grassroots lobbying. Grassroots lobbying is communications by a representative of an entity to the general public encouraging correspondence to an official’s office in support of, or opposition to, an official action. You must determine how grassroots lobbying is treated in your jurisdiction.

Engaging in grassroots activities may not meet the definition of lobbying. In Utah, you must communicate directly with an official to be engaged in lobbying and have any registration or reporting requirements.  Next, grassroots lobbying may only trigger disclosure of related expenses. Your grassroots lobbying expenses are disclosed in California if your employer is already registered. Finally, grassroots lobbying may require registration and reporting. Arkansas law expressly includes grassroots communications in the definition of lobbying and requires disclosure of the related expenditures.

Do not assume that if you do not contact a state official directly, you are not engaging in lobbying. Confirm what activities constitute lobbying before taking action.

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 not currently registered as a lobbyist and I would like to send a letter to all state legislators in support of pending legislation. Do I need to register as a lobbyist?

A. The act of sending a letter in support of or in opposition to legislation can be enough to trigger the lobbyist registration requirement in a state. Whether or not registration is required is dependent upon the lobbyist registration threshold in any given state.

Some states have thresholds based on the definition of lobbying whereby engaging in a lobbying activity will require lobbyist registration. For example, in a state where registration is required upon receipt of compensation to encourage the passage, defeat, approval, or modification of legislation by members of the legislature, lobbyist registration would be required prior to sending the letter. Iowa is an example of this type of state.

Other states have thresholds based on the amount of time spent lobbying or preparing to lobby. In Maine, an individual is permitted to spend eight hours lobbying before registration is required. In such a state, tracking your time while preparing the letter will be important in determining if registration is required.

Please consult the lobbyist registration threshold in your jurisdiction prior to sending any correspondence to a public official.

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. Some of the state lobbying reports ask about my travel expenses. What does this include?

A. “Travel expenses” is a phrase used by several states. It can refer to two different types of expenditures.

Some states require the disclosure of personal, reimbursed expenses incurred while lobbying. This would include food and beverage, hotels, cab fare, and travel expenses for a lobbying trip. Iowa, for instance, requires lobbyist employers to disclose all reimbursements made to their lobbyists. So, if a lobbyist lives in Topeka and flies to Des Moines to communicate with a legislator, the airfare is a reportable expense. Note, however, this generally only applies if the primary purpose of the trip is lobbying as defined by the state. A trip during which the lobbying contacts made were incidental to the main purpose of the travel would usually not need reported.

Other states, however, require the reporting of airfare or other travel costs paid by a lobbyist on behalf of a legislator or other public official. In Idaho and Mississippi, for example, a lobbyist or lobbyist employer may pay for a public official to travel to an event or to the company’s facilities, and the cost of the travel must be reported.

In all of these cases, the state reports request “travel expenses.” As you can see, it is very possible for the same words to have different meanings in the eyes of different states. When in doubt, lobbyists and employers can always contact us for guidance.

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 who would like to attend a charitable golf tournament.  Are there specific restrictions or requirements for this type of event?

A. Mere attendance at a charitable golf tournament or similar event is not typically restricted.

However, this activity may be prohibited or subject to disclosure requirements depending on the circumstances.

Being a registered lobbyist does not hinder your ability to donate independently to a 501(c)(3) organization.  However, in some instances, your attendance may be requested because the event is associated with a public official.  If an official asks you to attend or sponsor the charitable event, this may be considered making a contribution “at the behest of” the official, depending on the laws in your jurisdiction.

If a charitable contribution is made “at the behest of” a public official, there are two considerations: permissibility and disclosure.  First, is the charitable contribution permissible?  A jurisdiction may consider the charitable contribution to be a gift to the public official who requested it.  For example, Massachusetts considers a charitable contribution in this scenario to be a prohibited gift.  Even if the charitable contribution is a permissible gift, there may be a limit as to how much a lobbyist may donate.

Second, if a lobbyist may make the charitable contribution, is it disclosed on a lobbying report?  In Illinois, these charitable contributions are not reportable on a lobbying report.  In California, the official who made the request of the lobbyist must disclose the charitable contribution.  However, this type of expenditure is reportable on a lobbying report in Connecticut.

If you are a registered lobbyist, check with the applicable state regulatory agency before making a charitable contribution “at the behest of” an official.

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.  As an organization employing in-house lobbyists, what expenditures am I required to capture for inclusion in the aggregate dollar amount reported on my quarterly Federal LD-2 report?

A. There are a variety of expenditures that Federal registrants are required to track and report in an effort to provide a good faith estimate of their activity.  These expenditures include:

• Compensation, expenses and overhead associated with “registered” lobbyist employee activity.  For Federal purposes, a “registered” lobbyist is an individual who meets the statutory definition of a lobbyist and is listed by name on the LD-2 report;
• Compensation, expenses and overhead associated with any non-lobbyist employee who engaged in lobbying activity during the quarter (even though they do not meet the statutory definition of lobbyist).  Their names are not listed on the report, but the value of their activity is included;
• Dues paid to an association or membership organization during the quarter that are attributable to lobbying.  This amount is typically a percentage of the overall payments made to the membership organization and is ascertained by speaking with the outside entity directly.  Importantly, dues payments for lobbying activities should be included in the estimate for the quarter in which they are paid and cannot be apportioned over a longer period of time;
• Retainers/fees incurred during the quarter to outside consultants/firms for lobbying activities.  These fees are required to be included during the quarter in which they are incurred regardless of whether billing or payment has been made.

If we can be of assistance in helping to identify reportable expenditures, please let us know.

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:  Can I change the method by which I am calculating my lobbying expenditures for purposes of filing my Federal  LD-2 reports?

A:  Yes, at the appropriate time.  Under the LDA, registrants have the option of electing the compilation method for quarterly expenditures – that is, whether they use the LDA definitions or the IRC definitions for lobbying.  A change in that method election can only take place, however, in the first quarter of each new year.  Once a report has been filed using one method then all subsequent reports for that reporting year must employ the same method.  That being the case, this is a very good time to consider whether it makes sense to change.  There are advantages and disadvantages to each method and the decision to change your method should be made after careful consideration.  Here are just a few important differences to keep in mind when considering a new method election for 2012:

• The IRC method allows an organization to employ only one tracking system for both tax and LDA purposes;
• The IRC method provides a greatly narrowed definition of communications with executive branch officials;
• Under the LDA method, neither grassroots nor state and local lobbying expenditures are included.

If you think it may make sense to consider a change in your calculating method, please let us know and we’d be happy to assist in a more thorough analysis.

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’m a registered lobbyist in many different states.   I’ve noticed some states have badge requirements.  Am I really required to wear a badge? 

A:  The 2012 registration season is upon us.  As legislative sessions commence in various states, it is important to take stock of your various lobbyist registration requirements.   As you probably know, it is important to timely file your registration renewal.  However, there are other auxiliary requirements you must mind before you step onto capital grounds, such as your jurisdiction’s training and badge requirements.

The short answer to your question is a resounding yes—in some jurisdictions, wearing your badge is required to engage in lobbying activity.  In some states, you are unable to complete your registration, or file lobbyist disclosure reports unless you pick up your name badge.   Some states may require a personal visit to have your picture taken.  For example, in Georgia, upon initial registration, you must visit the Georgia Government Transparency and Campaign Finance Commission to have your photo taken for your badge.  For quick reference, here is a list of states where badges and/or name tags are required:

• Connecticut
• Georgia
• Kansas
• Maine
• Missouri
• North Dakota
• New Hampshire
• New Jersey
• Nevada
• Pennsylvania
• Rhode Island
• South Dakota
• Wyoming

However, in some jurisdictions, although wearing a badge is encouraged, it is not absolutely required.  These states include Colorado, Illinois, Louisiana, Mississippi, Tennessee, and West Virginia.

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 want to make political contributions to a candidate for state assembly.  The limits are per election.  How do I make certain the contribution is attributed to the correct election [primary or general]?  Does it matter when I give the contribution in relation to the election?

A:  In this situation it is important to have a “meeting of the minds” between the contributor and the candidate.  The contributor’s intent should be made clear by either indicating the name of the election on the memo line of the check [e.g., 2012 Primary Election], or including a cover letter with the check, or both.  The cover letter can contain language specifically earmarking the contribution for the intended election.  Using these precautions should prevent the candidate from allocating the contribution to an election different from the one intended by the contributor, thereby resulting in a violation of the per election contribution limits.   It is not unusual for a candidate to file his pre- or post- election reports disclosing aggregate contributions from a donor in violation of the per election limit.  The candidate allocated two or more checks to one election, but the contributor intended one check for the primary and one for the general.

Furthermore, a contributor must be aware of the timing of the contribution.  For instance, in New Jersey, you only have 17 days after an election to make a contribution for that particular election; otherwise the contribution is automatically applied toward the next election, regardless of the contributor’s intent.

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.