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 8, 2010 •
Governor-Elect Sets Sights on Ethics Reform
Promises come in response to scandal connected with gambling legislation.
Alabama Governor-elect Robert Bentley wasted no time in declaring ethics reform a top priority when he assumes office in 2011. Bentley stated his preference is to hold a special session of the state legislature within the regular session, scheduled to convene in February, because it would save the taxpayers money.
Bentley’s goals for the special session include increased frequency of reporting political contributions and online publishing of the contributions. The promises of sweeping ethics reform come on the heels of a scandal in which state senators and lobbyists have been charged with bribery and corruption in connection with pending gambling legislation.
This photo of Robert Bentley is is licensed under the Creative Commons Attribution-ShareAlike license by Zwilson14.
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.
October 6, 2010 •
Ask the Experts – Charitable Contributions
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
Q. As a registered lobbyist, I am often contacted by elected officials to make a corporate contribution to the officials’ charity of choice, foundation, or scholarship fund. Is this legal? Am I required to disclose these contributions on my lobbying reports?
A. This scenario happens more and more every day. Even though the official does not derive direct, political contributions for his or her campaign, such charitable contributions nonetheless result in positive exposure for the official, goodwill by the lobbyist, and beneficiaries that include the underprivileged, the sick, and the elderly. Furthermore, the monetary amount of corporate charitable donations can surpass the amount of permissible political contributions under campaign finance law.
Most states allow a lobbyist’s employer to make charitable contributions at the behest of an elected official and there are no reporting obligations. Some of the other jurisdictional requirements include:
FEDERAL: Pursuant to House and Senate Rules, charitable contributions made by a registered lobbyist at the behest or designation of a legislative member or employee are prohibited, unless the member or employee has designated the contribution to a charitable organization in lieu of an honorarium.
Please note, however, a charitable organization established by a person before that person became a covered official – and where that covered official has no relationship to the organization after becoming a covered official – is not considered to be established by a covered official.
NEW YORK: Charitable contributions made at the behest of a public official are not permitted.
NEW JERSEY and NEVADA: The charitable contribution is allowed but is not reportable as long as the contribution is not made in the official’s name.
CALIFORNIA: The contribution is permissible but must be reported by the official, not the lobbyist or the employer.
CONNECTICUT: The charitable contribution is permissible and is reported as a lobbying expenditure.
DELAWARE: The contribution is reported as a gift.
DISTRICT OF COLUMBIA: The contribution is reported as other.
WYOMING: The contribution is only reported if it exceeds $500.
UTAH: Charitable contributions given for a political purpose are reportable.
If clients who subscribe to our Executive Source Guide on Lobbying Laws™ have further questions about other jurisdictions, they can always check the particular jurisdiction in the online resources. Or, clients can call us if they have some special information need.
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.
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 21, 2010 •
Ethics News from Connecticut
The Citizen’s Ethics Advisory Board will hold a regularly scheduled meeting on Thursday, September 23, 2010, at 1:00 p.m.
The meeting will take place at the Office of State Ethics, 18-20 Trinity Street in Hartford. The board is scheduled to discuss the feasibility of easing eligibility restrictions of members after it was recently reported an August meeting was forced to be canceled due to lack of quorum. The board is allotted nine positions; however, only six are presently occupied.
After news of the available positions and canceled meeting were reported, officials stated several Connecticut citizens had been in contact with the board about filling a vacancy. Before any new board member can be seated, the individual must first be determined to be a Connecticut voter, have not held or currently hold political office, and have not campaigned for election to political office in the three years preceding the appointment. Further, a board member is not permitted to hold office in any political committee or party, make contributions to state campaigns, be a state employee, be a lobbyist, or be in an organization wherein the purpose is to influence legislation or public agency decisions.
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.
September 16, 2010 •
An Interview with Jim Sedor
In honor of the 10th anniversary of News You Can Use (NYCU), I interviewed its editor, Jim Sedor.
News You Can Use is a weekly digital news aggregation on the issues of campaign finance, lobbying, procurement, and government ethics. Every week Jim Sedor gathers between 80 and 100 articles, and every Friday morning NYCU is sent out to our subscribers.
Hi Jim! How did NYCU come about? How long have you been associated with it?
The idea for compiling a weekly review of what is happening across the country in ethics, campaign finance, and lobbying originated with Elizabeth Bartz. I came aboard in 2000 to implement what she wanted.
Elizabeth had found the company didn’t have a process to find important information that was out there in a timely way and was missing a lot of things that would affect the business.
When we started, it was just an in-house review of the most recent happenings – it had not even been christened “New You Can Use” yet (a name that Elizabeth also coined).
As it grew, we figured our clients would love to see – and needed to know – what we were finding, so we started sending NYCU out to them by e-mail.
Who is a typical NYCU reader? How does NYCU give them a “heads up” regarding campaign finance and lobbying news?
I don’t know if I can classify a typical reader – maybe someone who subscribes to our services and needs to know what is happening in their field – like lobbyists, campaign finance lawyers, companies that employ lobbyists and give money to candidates, or firms that compete for state contracts.
We often give readers the first word about specific changes in campaign finance or lobbying law in a given state or the federal level. Most of the time, we have been tracking those changes from the beginning and see them through to the end – articles on a bill’s introduction to its signing by the governor.
We also follow scandals closely because those are most often the trigger for reform and you can almost predict at the start of some corruption investigation that there will be changes ahead and it should be monitored. The whole issue of “pay-to-play” reform is an example.
After ten years of gathering news, do any stories stand out? Craziest? Most egregious? Biggest surprise?
I try not to be cynical, but sometimes I can’t help it. I’m not surprised by most stories of graft and quid pro quo deals and the like, although sometimes the sheer scope and audacity involved in a particular story catches my eye.
We had that recently here in Northeast Ohio when it seemed like the whole Cuyahoga County government was indicted for corruption that involved tens of millions of dollars in bribes and crooked contracts.
One case that stands out for sheer strangeness is Mark Sanford, the governor of South Carolina who said he was hiking on the Appalachian Trail, but was actually much further south – in Argentina visiting the woman he was having an affair with. Nobody knew where he was.
You have a lot of fun at COGEL Annual Conferences. Can you tell us what happened at one particular COGEL breakfast in Chicago, December 2008?
We were having breakfast at the conference when a person from the Illinois Executive Ethics Commission got a message on his Blackberry and excused himself. When he got back to the table, he said he had pressing business and had to leave – the governor of Illinois had just been arrested and “led away in handcuffs.” That turned out to be the day Rod Blagojevich was arrested.
Can you picture doing NYCU fifteen years ago, prior to the advent of on-line newspapers and super smart search engines?
It would be impossible to do NYCU without the Internet and be as comprehensive – we just couldn’t cover the whole country and really stay on top of things.
According to our tally, you have gathered 41,517 articles in the last 10 years for NYCU. How does that make you feel?
Tired. (Laughs) And it makes me feel like I need a vacation – I’ve been working too hard.
When you break it down like that, it really shows the vast amount of material that has been published on campaign finance, lobbying, and ethics.
I feel a sense of accomplishment – that I have been able to stay on top of this and get most of the important stories that have been out there. We don’t miss much.
It also shows these are issues that are of great importance to a lot of people and reporters will continue to churn out story after story.
Thank you, Jim! All the best to you for another wonderful 10 years!
September 15, 2010 •
NYC Campaign Finance Board Issues Report
New York City campaign finance reforms alter nature of political contributions.
NEW YORK: A recent examination by New York City’s Campaign Finance Board shows that changes enacted before the 2009 mayoral election encouraged 34,000 New Yorkers to make campaign donations for the first time; drastically curtailed the role of businesses, political committees and lobbyists in campaigns; and caused a major drop in donations from those doing business with the city.
The Campaign Finance Board report found that New York City’s newly promulgated rules diminished the role of businesses, political committees and unions in campaign fund-raising. They now account for 7.2 percent of all funds available to candidates. In the last election for State Assembly and Senate candidates, such contributions accounted for 66.6 percent of all the money raised. New York City’s system has become a model for campaign finance reform based upon these results.
Photo of the New York City Hall by Momos on Wikipedia.
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.