December 2, 2010 •
A Year of Big Changes to Illinois Lobbyist Laws
In the wake of seemingly constant political scandal, particularly involving the Governor’s office, the state of Illinois passed significant changes to its Lobbyist Registration Act.
The enhancements to the system are aimed toward improving transparency and easing the public’s fear of “back room” politics. It is no coincidence that the lobbying law changes come at the same time the state is strengthening ethics rules in other arenas. The state recently passed new disclosure requirements for contacts with procurement officials. Additionally, Illinois’ campaign finance laws will feature contribution limits in 2011 and quarterly PAC reporting. The improvements to the state’s lobbying regulations are part of an overall climate of increasing disclosure around the United States. Several other states, including Utah and Georgia, have made similar changes in state lobbying law this year.
The first change to the rules, which is already known by most people impacted by it, relates to the registration fee. Illinois initially sought to increase this fee to $1,000 per lobbyist and per organization employing a lobbyist. Thus, a company with two state-level lobbyists would have been charged $3,000 per year. The ACLU sued for and was granted an injunction on this fee. Essentially, the state agreed Illinois could not demonstrate the increase in cost was necessary to administer the Lobbyist Act. Additionally, the ACLU had raised a First Amendment establishment clause argument because the bill granted exemptions to certain religious lobbying and thus “demonstrated a preference for religious speech over non-religious speech.” Eventually, the state and the ACLU agreed to a fee of $300 and the suit was dropped. Additionally, lobbyists are required to complete an online ethics training course within 30 days of registration.
Lobbyists will have to report more frequently in 2011 and beyond. The lobbying dates used to be tied to whether the legislature was in session but are now semi-monthly, regardless. In 2010, while the litigation on the Act was pending, reporting was done essentially as soon as the Secretary of State’s Index Department was able to receive them in the midst of the judicial and legislative melee. Lobbyists filed a report on September 30 for the first half of 2010, and now must report second-half expenditures on January 15, 2011. Starting in 2011, reports are due twice per month. A report for the first 15 days is due on each 20th, and a report covering the 16th through the end of each month is due on the following 5th. While this is very cumbersome, it is at least consistent. The smaller reporting periods should make the information to be reported very manageable.
One feature of Illinois’ lobbying seen in a few other states is the provision relating to notification of officials. Previously, if an official were set to appear on a lobbyist’s report because that lobbyist made an expenditure on the official, the lobbyist was required to give the official notice of this fact 25 days before the report was due and again 30 days after the report was filed. Under the new changes, the 30-day post-notification remains but the pre-notification is changed. Now, lobbyists must give the official “contemporaneous written notification” of a reportable expenditure made on the official’s behalf.
Photo of Gov. Pat Quinn by Chris Eaves on Wikipedia.
November 30, 2010 •
Orange County to Revisit Lobbyist Registration Ordinance
Two Orange County, California supervisors have introduced a new version a law requiring lobbyists to register with the county so the public can know who is influencing votes on contracts and other public matters.
Similar legislation was voted down last month. If the ordinance passes, anyone who lobbies the county board on behalf of someone else will be required to register annually and report on whose behalf he or she is lobbying. The call for lobbyist disclosure in Orange County comes after a county grand jury issued a report critical of the county supervisors for not having any lobbyist disclosure requirements. Several local political figures have implicitly threatened to have a lobbyist registration law placed on an upcoming ballot if the supervisors do not create it themselves.
Photo of Newport Center skyline and Santa Ana mountains by Brian 1078 on Wikipedia.
November 30, 2010 •
Texas Ethics Commission Rolls Out New Lobbyist Software
Download is available in December.
The Texas Ethics Commission has issued a public notice to all lobbyists registered with the commission. The commission advises all filers to install the newest lobby electronic filing software, version 2.5.3, prior to filing a lobby activities report. In Texas, lobbyists required to register with the commission may include corporations, partnerships, association or other types of business entities as well as individuals.
The new software will be available for download on the Ethics Commission website beginning December 1, 2010 at: www.ethics.state.tx.us/whatsnew/elf_info_lobby.htm
Image of the Seal of the State of Texas by Juan Vega on Wikipedia.
November 23, 2010 •
Alabama Utilities Regulators Announce New Restrictions on Gifts and Campaign Contributions
Alabama utilities commissioners turn out the lights on gifts and contributions from lobbyists.
The state’s Public Services Commission approved new ethics rules last week by a 3-0 vote of the commissioners. These regulations prohibit a commission employee from soliciting or accepting a gift or campaign contribution from a lobbyist representing an industry regulated by the commission.
The new rules took effect immediately upon approval by the commissioners. The Public Services Commission regulates public utilities and telecommunications providers in Alabama.
Map of Alabama by JimIrwin on Wikipedia.
November 10, 2010 •
Louisiana Extends Lobbying Law to Local Governments
With the passage and subsequent gubernatorial approval of Senate Bill 507, Louisiana has extended the application of its lobbying law to local governments. The provisions of the bill take effect on January 1, 2011.
Although the provisions of the bill were enacted as a new and separate chapter in the Louisiana Revised Statutes, they largely mirror the requirements of the lobbying laws already applicable to legislative and executive branch lobbying on the state level. For example, as it is on the state level, registrations expire on December 31st of each year and registration renewals are due on January 31st at the latest. Reports of local lobbying activity are due on the 25th day of each month, as they are at the state level. And the information required to be disclosed is largely the same.
The bill contains a provision found in the state executive branch lobbying law, but not in the legislative branch lobbying law, which allows an employer to file reports on behalf of all the lobbyists representing that employer’s interests. An employer wishing to exercise that option must notify the board of ethics by January 31st.
Unlike the state-level lobbying laws, the bill does not specify a registration fee for local lobbyists.
The Louisiana Board of Ethics is responsible under the bill for administering and enforcing the provisions of the bill. This includes educational activities and seminars related to the bill, as well as the assessment of late filing fees.
State and Federal Communications will continue to monitor developments with regard to local lobbying laws in Louisiana as the bill goes into effect and is implemented by the board of ethics.
Photo of the Louisiana State Capitol by Bluepoint951 on Wikipedia.
November 9, 2010 •
Minnesota Board Releases Advisory Opinion
Minnesota Campaign Finance and Public Disclosure Board Issues Advisory Opinion to Clarify Lobbyist Registration Requirement
The Minnesota Campaign Finance and Public Disclosure Board issued Advisory Opinion 413 clarifying the state’s lobbyist registration requirements. The Board sought to answer whether a lobbyist is required to register multiple times when employed by an entity which consists of a parent company and a number of affiliates, including subsidiaries and joint ventures controlled by or under common ownership and control of the parent company.
Several of the affiliates have legislative and administrative interests in Minnesota, and lobbying is conducted on their behalf. The Board concluded that a lobbyist must register on behalf of each association whose interests they promote, regardless of the mechanism used to retain or direct the efforts of the lobbyists. The opinion continued that a lobbyist who represents an association such as a trade or business association is not required to register separately for each member of the association.
Photo of the Minnesota State Capitol by Mulad on Wikipedia.
November 9, 2010 •
Ask the Experts – 2011 Lobbying Registrations
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
Q. I am registered in numerous states. What are some of the features I need to know regarding renewing my lobbyist registrations for 2011? Do all my registrations automatically expire at the end of the year? H-E-L-P!
A. These are all very good questions, as January 1, 2011 is quickly approaching. The expirations on December 31 of this year are particularly thorny because they include not only those states having annual expirations, but most biennial expirations occur at the end of an even-numbered year.
As the states begin their 2011 legislative sessions, here are some things to keep in mind:
Annual registrations: The majority of states have a registration term based on a calendar year. If registered in any of the following states, your registration will expire on December 31, 2010.
Alabama Mississippi Alaska Missouri Arkansas Nebraska District of Columbia New Hampshire Florida [legislative and executive] New Mexico Georgia North Carolina Idaho [legislative and executive] Ohio [executive] Illinois Oklahoma Indiana [legislative and executive] Rhode Island [legislative] Iowa [legislative] South Carolina Kansas Tennessee Louisiana [legislative and executive] Texas Massachusetts Biennial registrations: The trick to keeping track of your registration expiration for biennial states is knowing whether the biennium ends on December 31st of an even-numbered or odd-numbered year.
Those states with biennial registrations expiring on December 31, 2010, include:
California Pennsylvania Connecticut Utah Hawaii Vermont Montana Washington New York West Virginia Ohio [legislative] Wisconsin Legislative sessions: In some states, registrations expire at the end of the regular legislative session. These include Nevada [sessions are held in odd-numbered years] and South Dakota. In Iowa, executive branch lobbyist registration is valid until the next regular session of the general assembly.
Non-calendar years: In other states, registrations expire at the end of a year, but that year is defined as other than January 1 to December 31. These states have the following registration terms:
Colorado [July 1 to July 15 of the subsequent year] North Dakota [July 1 to June 30] Kentucky executive [August 1 to July 31] Virginia [May 1 to April 30] Maine [December 1 to November 30] Wyoming [May 1 to April 30] Maryland [November 1 to October 31] On-going registrations: Once you register in the following states, your registration is on-going until you affirmatively terminate. These include:
Delaware
Federal
Michigan
Minnesota
New Jersey [a fee is due annually on November 15]
Rhode Island executiveAnd then there is Arizona: Just to keep you on your toes, Arizona has a biennial registration where lobbyists renew during November of odd-numbered years, and employers renew during November of even-numbered years.
November 4, 2010 •
Utah Voters Approve New Legislative Ethics Commission
Amendment takes effect in 2011
On November 2nd, voters approved Constitutional Amendment D by a vote of 67 percent for to 33 percent against. Amendment D establishes a five-member legislative ethics commission with the authority to conduct an independent review of complaints alleging unethical legislative behavior.
The ultimate decision whether to punish or expel a member of either the House or Senate would remain with the member’s chamber. The amendment also prohibits sitting members of the legislature or registered lobbyists from serving on the new commission.
Amendment D takes effect on January 1, 2011.
October 20, 2010 •
Baltimore May Expand Lobbying Laws
Bill Introduced to City Council
Baltimore City Council President Bernard Young introduced legislation to expand the city’s rules on lobbying. The Promoting Honesty in Lobbying bill requires individuals paid any dollar amount for lobbying to register as lobbyists. Currently, individuals are only required to register as lobbyists if they earn $2,500 or more.
Registration would also be required of individuals spending 20 percent or more of their time over a six-month period on lobbying. Lobbyists would have to report total expenditures for grassroots lobbying, including those for print, audio, visual, and electronic publications. Among other provisions of the bill is the prohibition of a lobbyist stating he or she can obtain the vote of a councilmember.
Photo by Nfutvol on Wikipedia.
October 13, 2010 •
New Hampshire Lobbyist Registration Requirement Draws Criticism
Legislator’s Complaint Raises Concerns over New Hampshire Lobbyist Registration Requirement
A 2006 New Hampshire ethics reform law requiring any non-public official who meets with a lawmaker to discuss legislation to register as a lobbyist has recently come under fire. The law currently exempts lawyers who are full-time employees of a public body from the registration requirement. Opponents of the law argue small towns and school districts that cannot afford a full-time attorney are put at a disadvantage to larger governmental organizations in efforts to influence legislation.
Citing the law, New Hampshire Rep. Rick Watrous recently asked the attorney general’s office to investigate the actions of attorney John Teague. Teague serves as the Concord School District’s lawyer, but is not a full-time school district employee. Teague participated in a meeting with Senate President Sylvia Larsen, Sen. Betsi DeVries, and the Superintendent of the Concord School District to discuss a House bill dealing with the school district’s charter. The attorney general’s office found that Teague ran afoul of the law by meeting with lawmakers privately and issued a public warning and ordered Teague to register retroactively as a lobbyist and pay the $50 annual filing fee. The finding has raised concerns about the propriety and application of the current registration requirement, including calls for legislative reform of the statute.
Photo of New Hampshire State Capitol Building by Nikopoley on Wikipedia.
October 6, 2010 •
Lawmakers and Lobbyists Indicted in Alabama Vote-Selling Scheme
Federal investigators have unsealed an indictment against four Alabama legislators, three lobbyists, two casino owners, and two others for their participation in an alleged bribery and kickback scheme.
The indictment, the result of a months-long joint investigation by the FBI and the Alabama Attorney General’s office, accuses the business owners of hiring the lobbyists to conduct “a full-scale campaign to bribe and coerce state legislators and others into supporting pro-gambling legislation that they favored”, according to Alabama Assistant Attorney General Lanny Breuer in this CNN article.
The state senators named in the criminal complaint are Larry Means, James Preuitt, Quinton Ross, and Harri Anne Smith. Several of the charges levied carry maximum penalties of significant prison time and fines of up to $250,000.
Photo of a casino by Raul654 on Wikipedia.
September 24, 2010 •
Canada Expands Lobbyist Reporting Requirements
The Registry of Lobbyists approved changes to the Lobbyist Registration Act significantly expanding the scope of reportable activities.
Under the new rules, lobbyists are required to report contact with Members of Parliament, Senators and certain staff members affiliated with the Official Opposition.
Additionally, these officials are now subject to Canada’s five-year “revolving door” restrictions forbidding certain officials from becoming lobbyists.
September 23, 2010 •
Lobbying News from Guam
Governor signs a new law affecting lobbying registration and reporting.
The governor of Guam has signed legislation replacing its existing lobbying law with new provisions requiring registration for legislative lobbyists and reporting on the 10th day of the month following the end of a quarter.
The legislation also contains a revolving door provision and penalties for violations of the act.
The Office of the Governor of Guam and the 30th Guam Legislature.
September 20, 2010 •
Ask the Experts – Non-Lobbyist Employees
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
Q. I am a registered lobbyist, and based on my time, compensation, and expenses, I have crossed the threshold prescribed by state law requiring registration. My company has employees whose contact with state legislators, executive officials, and employees meets the definition of lobbying, but they do not exceed the threshold requiring registration. Am I under any obligation to disclose their lobbying activities even though they are not registered? Is my employer?
A. This is a good example of something we advise our clients all the time: know your state! Here are examples of jurisdictions where you need to know the nuances of non-lobbyist reporting requirements.
CALIFORNIA: You are only required to register as a lobbyist if you spend at least one-third of your time lobbying in a calendar month. However, other employees at your company might need to report their pro-rata share of compensation if they spend 10 percent or more of their time lobbying in any one calendar month.
This includes time spent involved in grassroots activity, providing research services, and preparing materials to be used for lobbying. This information is disclosed on the lobbyist employer report Form 635 as “Other Payments to Influence Legislative or Administrative Action,” Part III, Section D. Luckily, clerical staff are never considered non-lobbyist employees.
NEW JERSEY: If you are a lobbyist, you must register if you spend more than 20 hours in a calendar year attempting to influence legislation, regulations, or governmental processes by communicating with a state official. Registered governmental affairs agents must disclose their operational costs, including compensation paid to support personnel, including legal, technical, and clerical staff. Now for the big exception. The compensation of an employee working less than 450 hours per calendar year in support of a governmental affairs agent is not reportable. (TIP: We advise you have support personnel track their time to ensure they do not exceed the 450-hour threshold.)
TEXAS: In this state, you are either a lobbyist or not – there is no in-between. In addition, individuals registered in Texas only report their own expenditures. Compensation is not reportable. Ever.
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.
State and Federal Communications, Inc. provides research and consulting services for government relations professionals on lobbying laws, procurement lobbying laws, political contribution laws in the United States and Canada. Learn more by visiting stateandfed.com.