Q: What are the different types of lobbyists in Arizona? Which expenditures are required to be reported on the quarterly or annual report? Do expenditures by my contract firm need to be disclosed?

A: In Arizona, there are three main types of lobbyists required to be listed on the principal registration: the designated lobbyist, authorized lobbyists, and Lobbyists for Compensation (LFC). The designated lobbyist acts as the single point of contact for the principal and is required to file quarterly and annual reports. Authorized lobbyists are employed by the principal for the purpose of lobbying, other than the designated lobbyist, listed on the registration and permitted to perform lobbying activities on behalf of the principal.  An LFC is a third-party lobbyist or contract firm compensated for the primary purpose of lobbying on behalf of a principal. While an LFC can act as the designated lobbyist for a principal most companies prefer to use an in-house employee to serve as point of contact for accountability purposes.

The designated lobbyist and each LFC are required to file four separate quarterly reports. The fourth quarter report also requires a cumulative total for the calendar year. While quarterly reports do not require personal expenditures by an authorized lobbyist to be reported, all expenditures must be disclosed in the principal annual report. The principal annual report must also include all reportable expenditures previously disclosed by each LFC on their quarterly reports.

Reportable expenditures provide a benefit to an individual state officer or state employee, whether or not the expenditure was made in the course of lobbying. All expenditures must be reported in one of the following categories: food and beverage; speaking engagement; travel and lodging; flowers; or other expenditures.

Expenditures more than $20 must be itemized and include the name and title of the state officer or employee benefiting; date, amount, and category of expenditure; and the name of the person who made the expenditure on behalf of the principal. Expenditures less than $20 may be reported in the aggregate. Additionally, expenditures for special events require the disclosure of the legislative body invited, date, location, description of event, and the total amount to be disclosed.