LobbyComply Blog

The Denver, Colorado City Council is set to consider sweeping reforms to the city’s lobbying code. Bill 26-0686 would require lobbyists to report grassroots lobbying expenditures in addition to legislative and administrative lobbying activities. The bill includes definitional changes, updated registration requirements, and additional disclosure requirements for lobbyists’ activity reports. The council next considers the legislation on June 8.

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Before adjourning the 94th Legislature last week, lawmakers passed an omnibus bill amending campaign finance and lobbying reporting. House File 4239 modifies requirements for disclaimers on campaign advertisements. The bill removes the requirement of including the official’s address when reporting a gift and instead requires the lobbyist to include the official’s name, title, the government jurisdiction, and the date of the gift. The bill eliminates the requirement to report certain costs associated grassroots lobbying but requires a disclaimer on grassroots lobbying material, identifying the individual or association responsible for the content and allows for a penalty of $3,000 if the disclaimer is not included. Gov. Walz signed the bill on May 18, making the lobbying changes effective immediately.

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The Second Session of the 57th Legislature adjourned sine die on February 19 at noon after 30 days in session. During the session, legislators passed bills on topics including universal childcare, medical malpractice reform, mental health commitment standards, and immigration restrictions. Lawmakers failed to advance bills introduced concerning lobbyist reporting, revolving door disclosures, and state procurement amendments. This does affect lobbying reporting. The grassroots lobbying report for advertising campaigns will be due on March 6.

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Comply with state and local procurement lobbying rules. Our online guidebooks make it easy to view regulations all in one place. Learn more here.

The United States District Court for the District of Minnesota granted a motion for a temporary restraining order and preliminary injunction in Minnesota Right to Life et al. v. Rashid. The injunction prohibits the Campaign Finance and Public Disclosure Board from enforcing certain disclosures for grassroots lobbying enacted in 2023 by House File 1830. The provisions of M.S. §10A.04(6)(d) require lobbyist principals spending more than $2,000 on grassroots advertising to disclose the names and addresses of their vendors in an itemized expenditure report. The court found the plaintiffs are likely to succeed on the merits of their case and face irreparable harm without a preliminary injunction.

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Q. My company is running ads in several states asking the public to contact their legislators in favor of pending legislation, so-called grassroots lobbying. My team member insists we do not need to worry about disclosing this activity. Is that correct?

A. As is often my response when talking about state lobbying, the answer is, “It depends on the state.” Your colleague is correct in a number of states. Alabama, Oklahoma, and Utah are among the states that do not require registration or reporting for solely engaging in grassroots lobbying.

Many states consider grassroots activities to be lobbying, and they will therefore count towards lobbyist registration. Rhode Island includes a good example of this, providing in its statute that lobbying includes soliciting others to act for the purpose of promoting any action by any member of the legislative branch of state government. In Pennsylvania, lobbying includes an effort to influence legislative action through indirect communications. You should know the definition of lobbying in the affected states so you can determine if lobbyist registration is required for your ads.

The expenses for these advertisements may need to be disclosed. If your company is not registered as a lobbyist employer or principal, special reporting may be required. California requires entities expending $5,000 or more in a calendar quarter in connection with soliciting or urging others to enter into direct communications with any elective state official or legislative official to file Form 645 according to the same quarterly schedule for lobbyist reports. Washington requires a company who has made expenditures, not reported by a registered lobbyist, exceeding $3,000 in the aggregate within any three-month period or $1,500 in the aggregate within any one-month period in presenting a campaign to the public, a substantial portion of which is intended to solicit the public to influence legislation, to register and file monthly reports as a sponsor of a grassroots lobbying campaign. Keep in mind that California and Washington are like a number of states, requiring grassroots lobbying expenses to be disclosed if you company is already registered.

We are seeing increasing regulation of grassroots lobbying in the states. You should be aware of your disclosure requirements before running any such campaigns.

The information from this response can easily be found on our website in the Lobbying Compliance section of the United States Lobbying Compliance Guidebook. Please do not hesitate to contact us if you have questions.

Gov. Jay Inslee signed House Bill 1317 and Senate Bill 5152, updating campaign and lobbying rules in response to current technologies and practices involving online activity and social media. House Bill 1317 was designed to shed light on special interest “astroturfing” in grassroots lobbying. The new law expedites registration of sponsors of grassroots lobbying campaigns and increases the disclosures that must be made in the registration and any advertisements made by the lobbying campaign.

Senate Bill 5152 seeks to combat the advent of “synthetic media” political ads. These ads are created when, via artificial intelligence or other such programs, media is manipulated to cause a person (in this case a politician) to say or act in a way that did not happen. Senate Bill 5152 gives a target of synthetic media a course of action to force a sponsor or media platform to terminate the synthetic media campaign. The bill also gives the sponsor the ability to add a disclosure to the synthetic ad stating the ad or image is a synthetic media post. Both bills become effective July 23.

Q: I heard New York City requires registration and reporting for grassroots lobbying? Who is required to register and how do I comply with all the reporting requirements?

A: Yes, if an individual’s compensation or expenditures for grassroots lobbying exceeds $5,000 in the aggregate during a calendar year. Lobbying is considered any attempt to influence city officials, therefore all grassroots campaigns would be considered lobbying. The city law reflects the existing state law requiring registration and reporting for state lobbyists.

Once a grassroots campaign reaches the $5,000 lobbying threshold, bi-monthly periodic reports, an annual report, and fundraising and political consulting reports must be filed. Fundraising and political consulting reports are filed on the same bi-monthly schedule as the periodic reports.

For the bi-monthly periodic reports and the annual report, make sure you keep track of compensation, expenses, subjects lobbied, and names of the person and agencies lobbied. For the fundraising and political consulting reports, you will need to track compensation paid for fundraising and/or political consulting activities, a list of all persons or entities contracted for the purpose of providing fundraising and/or political consulting services, and the total dollar amount raised for each candidate for which such activities were performed.

Don’t forget when it comes to websites, a social media communication constitutes a grassroots lobbying communication when:

1. References otherwise implicate an action covered by the term lobbying or lobbying activities;
2. Takes a clear position on the action question; and
3. Includes a call to action (i.e., solicits or exhorts the public, or a segment of the public, to contact a public official).

When grassroots lobbying through a social media communication is undertaken by an organization, through the organization’s social media account, this activity is reportable lobbying activity by the organization. When grassroots lobbying through a social media communication is undertaken by an individual, through their personal social media account, this activity is not reportable lobbying activity unless such individual is specifically retained by a client for such social media activity. Any expenses incurred to create, promote, place, or otherwise highlight an individual’s personal social media activity are reportable by the party incurring the expenses. A consultant’s activity on a grassroots campaign may be considered reportable lobbying if the consultant controlled the delivery and had input into the content of the message.

The Maine Ethics Commission has drafted a proposal to mandate lobbying reports from any group spending over $2,000 in a month on grassroots activism, including television or digital advertising, aimed at pending legislation.

The current threshold to trigger a report is $15,000, and even then only if the group first employs a traditional lobbyist.

The commission’s proposal is partly a response to the environmental organization Stop the Corridor, which ran advertisements last year opposing a proposed transmission line while lawmakers were considering bills pertaining to the project.

Ethics Commission proposals go to the state Legislature, which decides if it will craft them into legislation.

Public Affairs Council Advocacy Conference, here we come! We can’t wait to see everyone. If you’ll be attending, come on by and say hello at our Resource Marketplace Booth.

State and Federal Communications is excited to be a sponsor of the 2016 National Grassroots Conference next week.

We  believe in the great value of this gathering! Elizabeth Bartz, president and CEO of the company, will be bringing a team to Alexandria, VA to participate in the program. We never miss it.

You can follow the conversations from the conference on Twitter @PACouncil #2016GRC.

The Joint Commission on Public Ethics has released an Advisory Opinion regarding what constitutes lobbying activity when it comes to political consultants and grassroots communications. Advisory Opinion 16-01 requires public relations consultants to register their efforts to influence government through public campaigns, which includes any contact with editorial boards aimed at publishing communications involving a political issue.

The Advisory Opinion is meant to encompass grassroots communications, an action the public relations community is calling an unconstitutional restraint on free speech. With the Opinion taking effect, grassroots communication is considered lobbying if it references, suggests, or otherwise implicates activity covered by the Lobbying act; takes a clear position on the issue in question; or is an attempt to influence a public official through a call to action. If a consultant had control over the delivery of the message and had input into its content, registration and reporting will now be required.

What grassroots activities are you involved in? Did you know that reporting your grassroots activities in one state or municipality doesn’t mean that you are required to do so in another? Failure to report if it is required could cause major problems for you and your company. Are you registered as a lobbyist? Could your activities trigger registration and reporting? These are just a few of the items that require your attention when it comes to your government compliance.

Take the opportunity to sit down during the 2016 PAC Grassroots Conference and come have lunch on us! State and Federal Communications is hosting a luncheon on Wednesday, January 27th where you can discuss government compliance and more.

All attendees will be entered into a drawing to win a Fitbit Surge for attending. Seats are limited and are going fast, so check out our video for luncheon details and R.S.V.P. here!

See you in Orlando!

The Joint Commission on Public Ethics is seeking public comment on a proposed advisory opinion. The advisory opinion is in regards to the applicability of New York’s Lobbying Act to the activities of consultants when they are taking part in direct and grassroots lobbying, and whether they are subject to registration and reporting requirements.

The advisory opinion seeks to articulate when the Lobbying Act covers the services of consultants, and to clarify the test used to determine when grassroots advocacy constitutes reportable activity.

Comments will be taken by the Committee until December 4, 2015.

On February 2, 2015, the commissioners of the Joint Commission on Public Ethics (JCOPE) issued a report to the governor and the Legislature outlining requested changes to existing ethics and lobbying laws. Among their recommendations are mandatory electronic filing for lobbyists and lobbyist employers, disclosure of political consulting or fundraising activities undertaken by lobbyists, assessment of financial penalties for non-compliance with audits, and barring individuals or entities from acting as lobbyists if they have repeat violations of the Lobbying Act.

The report also notes the need for a review of the Lobbying Act to ensure all forms of government advocacy, including grassroots lobbying and strategic consulting, are being captured for reporting purposes.

According to the Times Union, Gov. Cuomo said he is willing to delay budget negotiations in exchange for an ethics reform package from the Legislature, incorporating the recommendations of the JCOPE.

The entire report is available here.