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.

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.

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.

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.

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.

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.

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.

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!

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.

The Nevada Legislative Ethics Commission has announced it will increase lobbyist registration fees for 2011. The fee has been set at $300 for paid lobbyists, triple the current amount. The fee for unpaid lobbyists will remain at $20.

According to the Lobbyist Registration Overview:

“The penalty for failure to file any monthly expenditure report(s) or to file late is $10 per day until the report(s) is submitted.”

If you have any questions, the Registration Office contact is (775) 684-6800.

Here is the overview from the Nevada Legislative Web site.

Photo by Ryan Jerz in Wikipedia.

The proposed Cuyahoga County ethics code is the product of a review conducted by a working group of volunteers who reviewed the ethics practices of 13 similar counties. The proposed code includes provisions for lobbyist registration and reporting, campaign finance disclosure, and “pay-to-play” provisions for public contracts.

The code calls for a new five person entity called the Cuyahoga County Ethics Board which will oversee ethics education and enforcement as well as a County Ethics Officer who would be empowered to render advisory opinions, process and initiate ethics complaints, and conduct investigations.

Finally, the new code provides for whistleblower protection for county employees who report suspected illegal or unethical conduct.

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.

Here is a question we have been asked many, many times by clients over the years.

Q. How do I most accurately calculate my pro-rata share of compensation when I am registered as a lobbyist in five different states? Do I take my gross annual salary and divide it by five?

A. If you take your gross annual salary and divide it by five, you will undoubtedly over-report your compensation. Although you can never go wrong over-reporting, you should also strive for accurate reporting, especially in this instance.

Think of your lobbying in terms of hours. Review your calendar a month, or even a week, at a time to determine the number of hours you lobbied in a particular state. Now, assign a dollar value to those hours, and the result is accurate reporting.

To do this, follow this formula:

1.    Take your gross annual salary and divide it by 2,080 (52 weeks in a calendar year multiplied by 40 hours per week). This is your hourly rate.

2.    Multiply the number of hours you lobbied by your hourly rate. This amount is the reportable pro-rata share of your compensation for lobbying in that state.

Here’s an example:

1.     Gross annual salary is $120,000.

2.     $120,000 divided by 2,080, is an hourly rate of $57.69.

3.    Fifteen hours lobbied in a particular state during a reporting period, multiplied by the hourly rate of $57.69, is $865.35. In this example, this is your reportable pro-rata share of your compensation for lobbying.

Of course, you have work weeks that exceed 40 hours. And you also go on vacation. Using 2,080 as the number of work hours in a calendar year is a generally accepted accounting principle that will sustain scrutiny of even the most stringent of state auditors.

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.

Commissioners, their family members, and their staff will no longer be permitted to accept gifts from lobbyists registered with the county, employers of registered lobbyists, or vendors or contractors of the county. Commissioners will not be permitted to be employed as lobbyists or engage in lobbying activities before municipalities or other local government entities within the county.

Further, family members and office staff of a commissioner will not be permitted to lobby before the Board of County Commissioners or other local government entities within Broward County.

The National Park Service’s National Register of Historic Places (NRHP) is a great place to find out more about the history of Washington D.C. One of its fascinating offerings is the Willard Hotel.

Since 1847, the Willard Hotel has been an important political hub and has hosted most of the U.S. Presidents since Zachary Taylor. Starting out as a row of small homes, the beautiful Beaux-Arts hotel you see today was built in 1904.

According to the NRHP site, the hotel has had quite a guest list:

“Presidents Taylor, Fillmore, Pierce, Buchanan, Lincoln, Grant, Taft, Wilson, Coolidge and Harding stayed at the Willard. Other notable guests have included Charles Dickens, Buffalo Bill, David Lloyd George, P.T. Barnum, Lord and Lady Napper, and countless others. Walt Whitman included the Willard in his verses and Mark Twain wrote two books there in the early 1900s.”

Part of the legend of the Willard Hotel is that it is the place where the term “lobbyist” became associated with people who try to influence government. According to the legend, people seeking to gain favor from President Ulysses S. Grant would find him smoking cigars and drinking brandy in the lobby of the Willard Hotel.

Here is a 2006 NPR recording of Liane Hansen on “Weekend Edition Sunday” talking to Barbara Bahny about the hotel’s reopening and its history of lobbying.

Apparently many people called NPR to point out that the term “lobbying” had existed long before the Willard Hotel, so Hansen did a follow-up piece called “A Lobbyist by Any Other Name?” on the history of the term.

In case you would like to visit, here is the Web site for the Willard InterContinental Hotel today. I wonder if they still allow cigar smoking in the lobby?

On that note, I’ll end with this quote from the NRHP Web site:

“It was Vice President Thomas R. Marshall, irritated at the Willard’s high prices, who there coined the phrase ‘What this country needs is a good 5-cent cigar.’”

The photo at the top is by AgnosticPreachersKid on Wikipedia.