Last night the U.S. House removed all registration requirements by those conducting political intelligence activities from the Senate’s Stop Trading on Congressional Knowledge (STOCK) Act, which passed the Senate last week with a bi-partisan vote of 96 to 3.

The original Senate Bill 2038, now in the house, expanded the Lobbyist Disclosure Act to include requiring registration and reporting from those conducting political intelligence activities, which was defined as “political intelligence contacts and efforts in support of such contacts, including preparation and planning activities, research, and other background work that is intended, at the time it is performed, for use in contacts, and coordination with such contacts and efforts of others.”

While the House also made other changes to the bill, the only reference to the removal of the reporting and registration requirements made by Congressman Eric Cantor in a press release issued last night stated, “Tonight, we will introduce a strengthened and expanded STOCK Act, and remove provisions that would have made the bill unworkable or raised more questions then they answered.”

If passed as changed in the House, the bill would have to return to the Senate for another vote. The current version of Senate Bill 2038 can be found here.

Photo of the U.S. Capitol by Florian Hirzinger on Wikipedia.

Broward County is expected to file suit in order to ensure the countywide ethics code remains in force countywide after residents of Wilton Manors, Hillsboro Beach, and Sea Ranch Lakes voted to undo portions of it during the January 31, 2012 election. Voters were asked whether local elected officials should be subjected to state law on issues relating to their side jobs, instead of the new county code of ethics, and voters in all three cities unanimously voted in favor.

Broward County Mayor John Rodstrom and Broward County Commissioners have all expressed their belief that the language used on the ballot was deceiving, as no mention of lobbying or the new county code of ethics, extended to all cities in Broward County on January 2, 2012, was contained in the language of the ballot questions.

The county is expected to pursue one of the following legal paths: suing on the ballot language as deceptive or acquiring a ruling concerning Broward County’s authority over the three cities in regards to the code of ethics.

For full news coverage, read:

“W.Va. lawmakers navigate lobby ban, social media” by The Associated Press in the Washington Examiner.

“W.Va. lawmakers seek buffer from e-lobbying but not blockade with public in social media age” by Lawrence Messina (Associated Press) in The Republic.

Photo of the West Virginia State Capitol Building by Analogue Kid on Wikipedia.

Federal:

Minor Senate Bill Transformed into Broad Reform Package

Records Show How Wealthy Shape Presidential Race

From the States and Municipalities:

Alabama

Trial Delayed One Week; Crosby Friend Talks About His Death

Arizona

Arizona City Council Candidate Barred for English Deficit Vows Appeal

California

California Campaign Disclosure Bill Rejected by Assembly

California

Defense Buoys State Campaign of McKeon’s Wife

Colorado

Colorado GOP Lawmaker Bradford Says She Might Leave Party

Colorado

Gov. John Hickenlooper Signs Law Delaying Campaign Finance Reporting until May

Florida

Broward Heads to Court to Defend Code of Ethics

Kansas

Two Kansas Judges Contributed to Anti-Abortion PAC

Kentucky

Ethics Watchdog Richard Beliles Has Few Friends in Kentucky Capitol

Massachusetts

Boston Developer Arthur Winn Fined $100,000 for Making Illegal Campaign Contributions

Michigan

Secretary of State Ruth Johnson Paid $1,325 for Failing to File Campaign Finance Reports

New Jersey

Freeholders Nix ‘Pay-to-Play’ Rules

New York

Ethics Commission Quietly Names New Director

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

Yesterday, the U.S. Senate passed a bill which expands the Lobbyist Disclosure Act to include those conducting political intelligence activities.

Senate Bill 2038, the Stop Trading on Congressional Knowledge (STOCK) Act, defines the term ‘political intelligence activities’ to mean “political intelligence contacts and efforts in support of such contacts, including preparation and planning activities, research, and other background work that is intended, at the time it is performed, for use in contacts, and coordination with such contacts and efforts of others.”

‘Political intelligence contact’ is defined to mean oral, written, and electronic communication to covered executive and legislative branch officials intended for use in analyzing securities or commodities markets, or in informing investment decisions.

The lobbyist registration and disclosure requirements would be required by both political intelligence consultants and political intelligence firms, also defined in the bill.

The U.S. House version of the bill, House Resolution 1148, also called the STOCK Act, contains similar requirements.

Representative Philip Johnson has introduced House Bill 3025, which would allow employers of lobbyists to host receptions for standing committees in either chamber of the general assembly.

Tennessee law prohibits lobbyist employers from holding receptions, unless all state legislators are invited.

The current prohibition was part of ethics reforms enacted after the Tennessee waltz scandal.

Photo of the Tennessee House Chamber by Ichabod on Wikipedia.

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.

National:

Study Finds Compliance Officers Are Highly Stressed

Federal:

Ex-Gingrich Adviser Now Trying to Close Lobbying Loopholes

Gabrielle Giffords Bids an Emotional Farewell to Congress

Meet the ‘Super Super PAC’

From the States and Municipalities:

California

Campaign Donation Limits Lifted

Georgia

Ethics Bill Gets Cool Reception in Georgia House

Hawaii

Think Hawaii’s Tough on Ethics? Try Iowa

Massachusetts

Scott Brown, Elizabeth Warren Pledge to Curb Outside Campaign Spending

New Mexico

Protesters Scuffle with [Lawmakers]

Ohio

Cleveland Television Station Covering High-Profile Ohio Bribery Trial with On-Air Puppet Help

Ohio

Lobbyists Sponsor Party for Kasich

Oklahoma

Ethics Proposal Would Allow Lobbyists to Skirt Spending Limit, Buy Meals for Oklahoma Lawmakers

Pennsylvania

Limits Raised on Philly Campaign Contributions

Utah

Gym Fees? Utah Politicians Find Loophole in Ethics Law

Washington

Appeals Court: Top 2 Primary OK, but not recall contribution limits

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

Senator Jeanette K. White has introduced Senate Bill 150, a bill concerning lobbyist registration and reporting. The bill proposes the removal of the ability to register within 48 hours of beginning to lobby and would require all lobbyists to register prior to lobbying, employers to register prior to engaging a lobbyist, and lobbying firms to file their lobbyist listings prior to the lobbyists commencing lobbying activities.

The bill also requires lobbying firms to update their listing of lobbyists before any new lobbyist commences lobbying activities and within 48 hours of a lobbyist’s termination. Finally, the threshold on reportable gifts to legislators would be decreased from $15 to $10.

If passed in present form, the changes would take effect July 1, 2012.

Campaign Finance

“Obama says Congress should stop campaign bundling by lobbyists” by Kevin Bogardus on The Hill.

“Super PACs set sights on 2012 congressional races” by Fredreka Schouten in USAToday.

“Super PACs drive a near-doubling in federal election spending” by Jim Galloway in The Atlanta Journal-Constitution.

“Wis. governor fights recall with out-of-state cash” by The Associated Press on CBS Money Watch.

Lobbying

“Gingrich says $1.65M contract wasn’t for lobbying” by The Associated Press.

“Ex-Gingrich Adviser Now Trying to Close Lobbying Loopholes” by Eliza Newlin Carney and Kate Ackley on Roll Call.

“Ethics bill gets cool reception in Ga. House” by Chris Joyner and Christopher Quinn in The Atlanta Journal-Constitution.

“Clerk reports on lobbyist activity in Cook County” by The Associated Press in the St. Louis Post-Dispatch.

Lobbyist disclosure statements are now accessible by the public on the San Francisco Ethics Commission website. You can search lobbyists, lobbyist clients, lobbying firms, reported public officials, and lobbying subjects of concern.

According to the site:

This site contains information about lobbying activities for all lobbyist who are registered with the Commission. The Commission requires these lobbyists to submit monthly statements of their lobbying activities including: Activity Expenses, Political Contributions, Contacts of Public Officials, and Payments Promised by Clients.

The Ethics Commission is also offering an API (Application Programming Interface) for programmers to take the raw data from lobbyist reports and create mashups and aggregate reports of their own.

For news coverage, read “San Francisco Publishes New Tool To Interpret Local Lobbying Information” by Sarah Lai Stirland on techPresident.

The Oklahoma State Ethics Commission has approved a rule which creates an exception to the $100 annual gift limit. The rule allows lobbyists to provide a lunch or dinner for a group of legislators once a year, during the legislative session, at the state capitol, without counting the meal against the annual limit. Lobbyists would be required to report the amount spent.

The rule will go into effect on January 1, 2013 unless the legislature disapproves by the end of the 2012 session.

Governor Jack Markell has announced plans to create an online database which will link registered lobbyists to the specific pieces of legislation they are lobbying for or against.

Photo of Gov. Markell by Stilltim on Wikipedia.

Governor Susana Martinez has endorsed legislative efforts to impose a two-year ban on lobbying for lawmakers. The forthcoming bill may also include civil or criminal penalties if legislators took lobbying jobs sooner than prescribed. All appointees of Governor Martinez have agreed to two-year bans on becoming lobbyists after leaving the position, but she wants formal legislation to hold state lawmakers to the same standard.

State Senator Dede Feldman has proposed Senate Bill 103, which would bar former legislators from lobbying for a shorter one-year period after leaving office. Currently, New Mexico’s lawmakers can quit their office and immediately begin lobbying, just as former state senator Kent Cravens did in September.

Photo of Governor Susana Martinez courtesy of the New Mexico State Government.