April 13, 2011 •
Georgia Ethics Loophole One-Step Closer to Being Closed
House Approves Ethics Measure in Georgia; Senate to Review Measure Next
The Georgia House of Representatives voted Tuesday to close a loophole in the state ethics law concerning expenditures made on behalf or for the benefit of public employees.
The House voted to amend Senate Bill 160 to add provisions requiring lobbyist reporting of expenditures made on behalf or for the benefit of a public employee for the purpose of influencing a public officer after Advisory Opinion 2011-03, released by the Georgia Government Transparency and Campaign Finance Commission, concluded state law did not require the reporting of such expenditures.
The bill must now return to the Senate for a vote on the House amendment.
Photo of the Georgia State Capitol dome by Connor.carey on Wikipedia.
April 5, 2011 •
FEC Updates Filing Software
Prior formats will not be accepted
Individuals and entities using the FEC’s FECFile software to file will have to update to the software’s latest version (7.0.1.0).
Reports using earlier versions will not be accepted.
Those using commercial software are advised to contact his or her vendor to ensure compliance with the latest electronic filing format.
April 5, 2011 •
Ask the Experts – Cash versus Accrual Method of Reporting
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
Q. If I receive an invoice from my contract lobbyist for services rendered during one reporting period, but I do not make payment on the invoice until the next reporting period, how do I know when to accurately report the payment?
A. You need to determine whether your particular state uses the cash or accrual method of disclosure.
The cash method is based on when money is actually transacted; in other words, when funds in point of fact change hands from client to contract lobbyist. In direct contrast to the cash method, the accrual method focuses on the obligation to pay as opposed to when funds actually change hands. Essentially, when you receive the invoice from your contract lobbyist, you are obligated to pay.
So which date do you use for reporting purposes? Is it the date you actually mail the check to the contract lobbyist, or the date you receive the invoice? These rarely, if ever, occur on the same date and therein lies the issue: what happens when these dates fall in different reporting periods?
Some states, such as Tennessee and Texas, specifically provide by statute or rule the method of disclosure that should be followed. When the law is silent, the most prudent thing to do is call the disclosure office for that particular jurisdiction and get an answer. Be sure to take the name and title of the person you spoke with and keep it in your records. You may often hear, “It doesn’t matter; report the expense however you choose.” This sounds great, but in reality is very frustrating. Whichever method you choose, be consistent. If you decide upon the cash method, document that and use it for all future reports.
When it comes to your contract lobbyists, be sure they are using the disclosure method required by law. This can be important in an audit when the state looks to see if your report aligns with the contract lobbyist’s report. If the method is optional, discuss with your contract lobbyist which method they intend to use and be consistent.
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.
April 4, 2011 •
The Government Accountability Office Publishes Lobbying Report
Findings show most of the industry is reporting properly.
The U.S. Government Accountability Office (GAO) has released a report stating that, with a small percentage of exceptions, most lobbyists comply with the federal lobbying disclosure laws.
Here is the full text of the report from the GAO.
For a good summary of the report, read Roll Call’s article “GAO: K Street Largely Complying With Disclosure Rules” by Alex Knott.
The Roll Call article noted that the annual report to Congress is required as part of the Honest Leadership and Open Government Act. The scope of the results included analysis of disclosure reports for the fourth quarter 2009 and the first three quarters of 2010.
March 31, 2011 •
News You Can Use from Rhode Island
ACLU Critiques the New Ordinance
News You Can Use Editor Jim Sedor pointed me in the direction of a news item from Providence, Rhode Island. A new ordinance there requires lobbyists to register with City Hall (including a fee), to get a photo ID, and to file quarterly reports. In response, the ACLU of Rhode Island offered a statement saying the ordinance could chill free speech. The issue may go to court.
The article offers the following quote:
“Despite the good and sincere intentions underlying this proposal, we believe it will deter and chill robust community advocacy,” said ACLU Executive Director Steven Brown. “We understand the City’s interest in promoting transparency in government, but this ordinance is not a proper way to achieve that goal.”
For the full article, read: “ACLU Says New City Law Has ‘Chilling Effect’ on Free Speech” by Stephen Beale, on GoLocalProv.com.
Here is the March 21 news release from the ACLU.
State and Federal Communications Research Associate George Ticoras reported on the new ordinance last week in “Providence Creates Lobbying Registration Law” on Lobby Comply.
Photo of Providence skyline by boliyou on Wikipedia.
March 23, 2011 •
Providence Creates Lobbying Registration Law
Registration and Reporting Required
Providence has passed a new lobbyist registration law. The Lobbyist Disclosure Ordinance requires registration before the first lobbying activity. Online registration will be an available option. Each lobbyist will receive an ID badge with his or her name, photograph, identifying information, and the name of each client being represented.
There is a $150 filing fee for lobbyists employed by entities with budgets over $250,000. Otherwise, the filing fee is $25. Lobbyists and employers will be required to file quarterly reports, and a final report in January detailing all expenses and compensation for the previous calendar year.
Penalties include fines up to $250 a day, up to a maximum of $25,000 per calendar year, and a prohibition of lobbying the city until the following year or until compliance is established. The ordinance takes effect May 16.
Photo of the Providence City Hall by Anatoli Lvov.
March 16, 2011 •
Georgia Governor Signs House Bill 232
New Law Eases Lobbyist Registration and Reporting Requirements
Governor Deal signed House Bill 232 on Tuesday, March 15, 2011. The law, which is effective retroactively to January 10, 2011, redefines the term “lobbyist” to require a person to be compensated specifically for lobbying activities before being required to register and report as a lobbyist. Also, a person is now only deemed a “lobbyist” if more than 10 percent of his or her working hours are spent engaged in lobbying activities.
A “lookback” period is included for each calendar month, requiring lobbyist registration and an initial disclosure report within five days if at the end of any month a person has met the 10 percent test. Further, the expenditure triggers for lobbyist registration have been increased from $250 to $1,000.
Additionally, lobbyists are granted a grace period of three business days in filing all disclosure reports. Finally, persons who are employed as bona fide salespersons are exempt from regulation as vendor lobbyists.
Photo of the dome of the Georgia State Capitol by Connor.carey on Wikipedia.
March 15, 2011 •
South Carolina Bill Will Double Lobbyists’ Fees
Money To Be Split
The House has included a provision in their appropriations bill which would double lobbyists’ registration fees. House Bill 3700 increases lobbyist and lobbyist’s principal registration fees to $200. The State Ethics Commission would retain fifty percent of the increased fee and the remaining fifty percent would go to the state’s general fund.
Also included in the bill is a provision precluding the State Ethics Commission staff from making any public comment which in any way reflects a personal opinion on any matter which is before the commission.
March 15, 2011 •
Everything is Bigger in Texas – Except a Legislative Per Diem
Trigger for Reporting Lobbyist Expenditures Decreases in Texas
Effective March 17, 2011, the amount triggering detailed reporting for food, beverages, transportation, lodging, and entertainment will drop to $90.
The trigger is set by statute at 60% of the amount of the legislative per diem.
Due to the legislative per diem decreasing from $168 for the 2009 session to $150 for the 2011 session, the trigger has decreased from $100.80 to $90.
March 10, 2011 •
Lobbyist Spending Increases in New Jersey
The state trend goes up while nationally it went down, largely thanks to the New Jersey Education Association.
Eric Brown’s Political Activity Law blog pointed me in the direction of a Philadelphia Inquirer-Daily News article that said lobbyist spending in New Jersey has increased 14% since Gov. Chris Christie took office. The grand total of spending was $66 million.
For the full story, read today’s article: “Christie’s tenure brings jump in lobbying” by Cynthia Burton.
Map of New Jersey by JimIrwin on Wikipedia.
March 8, 2011 •
Advisory Opinion in Georgia Clarifies Lobbyist Registration Statute
Officers and Employees of Business Entities the Focus of New Georgia Advisory Opinion Concerning Lobbyist Registration
The Georgia Government Transparency and Campaign Finance Commission has released Advisory Opinion No. 2011-1, providing for an interpretation of the lobbyist registration statute in regards to individuals who are officers or employees of a business entity. The Commission has determined these individuals must register as lobbyists if they meet with public officials and express opinions on potential or actual legislation that may impact the business entity.
Stacey Kalberman, Executive Secretary of the Commission, prepared the opinion, noting “the General Assembly drafted a broad provision which can only be interpreted to mean that any individual compensated by another, whether as a consultant or an employee, is acting as a lobbyist if such person attempts to influence legislation by the General Assembly.”
This opinion does not affect employees who may be conducting lobbying activities as an uncompensated volunteer, so long as they do not exceed $250 in expenditures.
March 7, 2011 •
Revolving Door Bill Introduced in Nevada
Two Year Cooling Off Period
A bill prohibiting public officials from lobbying the Nevada Legislature immediately upon leaving office has been introduced into the assembly. Currently, the state has no revolving door prohibitions and public officials may lobby as soon as they leave office.
Assembly Bill 184 requires a two year cooling off period before a former state legislator, governor, or other specified executive branch official may serve as a paid lobbyist. The bill allows for exceptions such as representing a local agency where the former official is currently employed and making formal appearances before the Legislature.
Photo of the Nevada State Legislature building by Dave Parker on Wikipedia.
March 7, 2011 •
Lobbyist Registration Coming to Tallahassee
Lobbyists will soon be required to register due to an ordinance recently passed by the Tallahassee city commissioners.
Effective April 1, 2011, lobbyists will be required to register with the city treasurer-clerk prior to engaging in any lobbying. Lobbyists will be required to pay a fee of $25 for each principal represented. Additionally, each lobbying firm may register in the name of the firm, corporation, or legal entity, provided the registration lists the names of all persons who engage in lobbying for the firm.
Further, each lobbying firm will be required to file a quarterly compensation report during each calendar quarter during any portion of which the lobbyist or lobbying firm was registered to represent a principal. A provision was also included in the ordinance stating the annual period of registration will be the calendar year, ending December 31, and noted the first period of registration will begin on the ordinance’s effective date of April 1, 2011, and all registrations during the 2011 year after such time will end on December 31, 2011.
March 3, 2011 •
Lobbying News You Can Use
Ex-Senator Lobbies for Hollywood
Lights, camera … action! According to a piece in the New York Times, former U.S. Senator Christopher Dodd (D-Conn.) has been hired as top lobbyist for the Motion Picture Association of America.
The articles notes that according to the law Dodd cannot directly lobby on Capitol Hill until 2013, but can offer plenty of strategy. “I have no intention of violating either the letter or spirit of that law, which is one I support strongly,” said the former senator.
For the full story, be sure to read “Motion Picture Industry Group Names Ex-Senator Dodd as Its New Chief” by Brooks Barnes and Michael Cieply in the March 1 edition of the New York Times.
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.