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.

“Days After SOTU Are Full of Lobbyist Feedback” by Kate Ackley in Roll Call.

“Super PACs’ money could tip balance of power in Congress” by Martina Stewart in CNN Politics.

“Lobbying dips sharply in 2011” by Dan Eggen in the Washington Post.

“Lobbying spending falls for first time since 1999” by Kevin Bogardus in The Hill.

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.

“On K Street, 2011 was year to forget” by Kevin Bogardus and Rachel Leven in The Hill.

“K Street’s boom goes bust” by Anna Palmer on Politico.

“K Street’s Largest Firms Saw Some Dips in 2011 Business” by Kate Ackley in Roll Call.

“Many lobbying firms saw dropoff in revenue in 2011” by Catherine Ho in the Washington Post.

“Lobbying outlays bounce back in 4th quarter” by Dave Levinthal on Politico.

“Chamber cuts lobbying spending in half for 2011” by Kevin Bogardus in The Hill.

“Chamber’s lobbying spend fell sharply in 2011” by David Ingram on Reuters.

 In the States:

“Lobbyists’ largesse at Capitol: $87,248” by Chris Joyner in the Atlanta Journal-Constitution. (This article discusses spending in the first two weeks of 2012.)

“Business lobby outspends all others, nears all-time record” by Adam Sichko in the Albany Business Review.

“Top 35 Biggest Spenders on Smith Hill” by Dan McGowan on GoLocalProv.com.

“’Occupy Courts’ to hit Citizens United” by MJ Lee on Politico.

“Lobbying for just a nod, a mention” by Abby Phillip on Politico.

“Perry’s K Street Allies Jump to Romney, Not Gingrich” by Eliza Newlin Carney and Kate Ackley on Roll Call.

“Google Protest of Anti-Piracy Bills Upends Traditional Lobbying” by Eric Engleman in Bloomberg News.

“One early winner in SOPA protest: Wikipedia” by Charles Cooper on CBS News.

“Silicon Valley learns fast in game of lobbying” by April Dembosky in Financial Times.

Voters in three Broward County cities will be asked to undo part of the recently enacted countywide code of ethics. Residents of Wilton Manors, Hillsboro Beach, and Sea Ranch Lakes will all vote during the January 31, 2012 election as to 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.

The effort to pass the referendum has been spearheaded in large part by Wilton Manors Mayor Gary Resnick. Resnick, a telecommunications attorney who lobbies in other cities in Broward County, fears he will be unable to run for another term in office after his current term is complete due to the ban on elected officials also being employed as lobbyists or engaging in lobbying activities in Broward County.

The code of ethics became effective countywide on January 2, 2012.

Senate Bill 244 proposes adding the Congressional Sportsmen’s Foundation, the National Assembly of Sportsmen’s Caucuses and the State Agriculture and Rural Leaders Association to a statutory list of lobbyist exemptions. If the bill passes, the groups will be exempt from the gift disclosures and paid travel bans imposed on lobbyists, regardless of whether lobbying occurs at their events. This is the latest attempt at carving out exceptions to the 2010 ethics reform bill which banned lobbyist-funded, out-of-state travel for legislators.

Although lobbyists cannot directly pay for a state legislator’s trip, by simply paying for membership in an exempt group like the American Legislative Exchange Council, the lobbyists gain access to legislators. Giving a group an exemption allows legislators to travel to the group’s conferences and hunting trips, at the group’s expense, without violating the lobbying rules or having to disclose the trips.

Exempt groups claim to be established for the education and support of legislators.

Photo of the Indiana State Senate Chamber by Charles Edward on Wikipedia.