State Rep. Mike Reynolds is criticizing officials at the state Ethics Commission for offering proposed changes to lobbyist reporting and registration, conflict of interest, and financial disclosure rules.

According to Reynolds, “the Ethics Commission seems to be declaring open season for lobbyists on elected officials” as the proposed changes “. . . have the potential of increasing lobbyists’ gifts to lawmakers by hundreds of thousands of dollars each year.”

Opponents of the proposed changes argue expansion of the current guidelines will increase undue influence on elected officials and reduce the efficacy of the commission in and of itself.

Following the November 13, 2013 meeting, the Georgia Government Transparency and Campaign Finance Commission issued an order to deny lobbyist renewal for the calendar year of 2014 for each lobbyist with outstanding registration, supplemental registration, identification card, and/or badge fees.

The commission will also deny lobbyist renewal for each lobbyist with unpaid fines or unfiled disclosure reports.

The 2014 fees for the lobbyist identification badge ($20) and supplemental registration ($10) will remain unchanged from 2013 amounts.

The Ethics Commission has issued an informal memorandum regarding a new training certification requirement for lobbyist registration.

Beginning September 19, 2013, Part C of the registration form will require the lobbyist to certify he or she has completed the required training in the last two-year period or will complete the training prior to being a regulated lobbyist for two years.

The next live training is scheduled for October 21, 2013. Lobbyists can verify their training status and complete the training online by accessing their account at https://lobby.ethics.state.md.us.

Last week the Maine State Legislature passed Legislative Document 184 and over the weekend Governor Paul LePage signed it into law. Legislative Document 184 requires legislators to wait one year after their term ends before engaging in activities that would require registration as a lobbyist or lobbyist associate.

Exempted from this prohibition are those former legislators who wish to engage in lobbying activities but do not receive compensation. If a legislator does engage in compensated lobbying activities during the restricted period, he or she is subject to a $1,000 civil penalty.

The law will not take effect until the start of the 127th Legislature, which will begin in December 2014.

Governor Mike Pence has signed a bill to change legislative lobbying regulations. Enrolled Act 1222 expands the definition of lobbying to include communications with any employee of the legislative branch and requires lobbyists to file registration statements and activity reports electronically.

The bill also increases the annual lobbyist registration fee from $100 to $200 and makes the lobbyist registration year match the current lobbyist reporting periods. Lobbyist registration statements issued for 2013 will expire November 1, 2013.

Most of the bill’s provisions become effective July 1, 2013.

The House has passed a bill to overhaul ethics laws, including campaign finance and lobbying. House Bill 3945 creates the Joint Committee on Ethics and the Public Integrity Unit to investigate complaints and replace the separate House and Senate ethics committees.

The bill includes new reporting requirements for campaign contributions just before an election and extends lobbyist registration and reporting for individuals lobbying local governments and school boards.

A final approval on Wednesday, May 1, 2013, allows the bill to meet the crossover deadline for Senate consideration. If sent any later, the bill would need a two-thirds vote for Senate passage.

The Legislature adjourned Saturday, April 27, 2013, shortly after passing a bill to change lobbying regulations. Enrolled Act 1222 expands the definition of lobbying to include communications with any legislative employee and requires lobbyists to file registration statements and activity reports electronically.

The bill also increases the annual lobbyist registration fee from $100 to $200 and makes the lobbyist registration year match the current lobbyist reporting periods. Lobbyist registration statements issued for 2013 will expire November 1, 2013.

Most of the bill’s provisions will become effective July 1, 2013, following approval by the Governor.

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The Senate approved its version of a House ethics bill on Friday, March 25, 2013. Now the House and Senate are seeking common ground between the different versions of House Bill 142.

The House version of the bill bans most gifts from lobbyists to individual legislators, but allows unlimited gifts to legislative groups. The Senate version imposes a $100 gift cap and erases the exception for legislative groups, but does not limit the number of gifts allowed. The Senate version also erases the House version’s expanded lobbyist registration for unpaid advocates.

Both chambers are expected to appoint a joint committee to negotiate in an effort to reach compromise before the session reaches its scheduled end on Thursday, March 28, 2013.

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State Representative Scott Drury has recently introduced two bills that would change the way lobbyists operate within the state. House Bill 2957 would change the definition of lobbying, thus causing more people to register as a lobbyist.

The bill would add communicating with a local government to influence action to the definition of lobbying. Therefore, all people who lobby a local government without a lobbying ordinance, the cities of Rockford and Springfield for example, would have to register as a lobbyist with the state. Also, those who lobby in a city with a lobbying ordinance, such as Chicago, would have to register with the state, in addition to their current city registration.

House Bill 2964 is a bill aimed at the state’s current prohibition on gifts. It would prohibit the relatives of a state officer, legislator, or employee from receiving prohibited gifts from a prohibited source (under state law, a lobbyist is considered a prohibited source). The bill also adds a new exception to the ban, adjusts one of the current exceptions, and abolishes another of the exceptions.

If the bill passes, a state officer, legislator, or employee would be allowed to accept admission to and the cost of food and beverages consumed at a reception, meal, or meeting by an organization before whom the recipient appears to speak or answer questions as part of a scheduled program where all members of the General Assembly were invited. This would replace the current exception for food and beverage, which allows for those to be provided if catered or consumed on the premises.

The bill would also limit the amount of travel expenses provided to $111 per day and the travel must be on a carrier available to the general public.

It remains to be seen whether either one of the bills will pass, but should they pass in their current form, it will change how lobbyists do business in the state.

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The House of Representatives has passed ethics legislation to bar lobbyist gifts to individual lawmakers and enact new rules on lobbyist registration.

House Bill 142 passed 164-4 on Monday, February 26, 2013 and now goes to the Senate.

Critics hope the Senate provides a limit for the gift ban exceptions, which allow for unlimited gifts to groups of legislators such as committees and caucuses.

Q. I am an in-house employee; however, I am not a registered lobbyist in my responsible state. Although I engage in lobbying activities from time to time, I do not meet the state’s registration threshold. However, other people from my company are registered. Do I have to disclose my expenditure and/or compensation for lobbying activities on company reports?

A. In some jurisdictions, although you are not a registered lobbyist, you may be required to include your expenditure and/or compensation information on company lobbying disclosure reports. There are 27 states requiring some level of reporting for non-lobbyist employees, including Arkansas, California, Georgia, Illinois, Indiana, Massachusetts, Michigan, and Wisconsin.

Every state treats non-lobbyist reporting differently. For example, in California, you are only required to include your compensation and reimbursed expenditures on a quarterly employer report if you spend more than 10% or more of your compensated time in a calendar month engaging in lobbying activities. In states such as North Carolina, Illinois, or New Jersey, permissible expenditures on behalf of public officials must be reported by the employer or registered lobbyist.

In the above jurisdictions where your company has an active lobbying presence, monitoring potential reportable activity is incredibly important. Although your level of activity may not necessitate registration in a state, you must become familiar with the state’s non-lobbyist reporting requirements, and carefully track activity, which may include the following:

• Compensation for lobbying activity;
• Personal reimbursed expenditures for food, travel, or lodging in connection with lobbying activity;
• Expenditures on behalf of public officials or employees;
• Sponsorships for events where public officials or employees will be present and receive a benefit; and/or
• Subject matter lobbied, including agencies contacted.

In sum, as you are reviewing your potential lobbyist registration obligations for the new year, it is just as important to review your potential reporting obligations as a non-lobbyist employee in the jurisdictions where your level of activity does not require registration.

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.

Q. I am a registered lobbyist who will be having a colleague accompany me to meetings with legislators. Should I be concerned with registration and/or reporting for my colleague?

A. Many individuals believe the presence of a registered lobbyist relieves a person of any disclosure requirements. Most jurisdictions have no exemption for this scenario. Lobbyist registration and reporting is required upon meeting the registration threshold.

Some jurisdictions do have limited exemptions from lobbyist registration requirements. In California, these particular actions would not be counted towards the lobbyist registration threshold. You do not engage in direct communication when you meet with a covered official in the company of a registered lobbyist retained by you or your employer. In Idaho, corporate employees need not register if the corporation is registered as a lobbyist and designates one or more of its employees as the corporation’s official lobbyist and the designated lobbyist is also registered.

Even if registration is not required, you must consider the applicable reporting requirements. A number of jurisdictions require your employer to report all lobbying expenses, which include those for employees who lobby but do not meet the registration requirements. Wisconsin specifically requires the disclosure of pro-rata compensation and expenses for these non-lobbyist employees. In Idaho, even if you are not required to register as discussed above, expenditures made by unregistered corporate employees in a lobbying effort must appear on the applicable reports.

Whenever you lobby state officials, consider all disclosure and compliance requirements, especially those related to the reporting for a non-lobbyist employee.

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.

Mayor Rahm Emanuel is continuing to overhaul the city’s ethics code by introducing another ordinance based on his ethics task force’s recommendations. While this proposed ordinance deals mostly with governmental employees and elected officials, it would also bring some changes to lobbyist registration and reporting.

The ordinance, if approved, will change the definition of a lobbyist. Currently, volunteers, employees, officers, and directors of a not-for-profit entity are exempted from registering as a lobbyist. However, the proposed ordinance will eliminate that exemption and require those members of a not-for-profit entity who seek to influence legislative or administrative action to register as a lobbyist. The proposal does allow the ethics board to create objective criteria allowing for a reduction or a waiver of the registration fees for not-for-profits lobbyists.

Finally, under the proposal, lobbyists would be required to disclose the actual amount of compensation received from employers. Currently, the compensation needs only to be rounded to the nearest $1,000.

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The clerk of the legislature’s office is implementing voluntary electronic filing for lobbyist registration and reporting for the 2013 legislative session.

Paper filings will be accepted through 2014, and mandatory electronic filing will be implemented January 1, 2015.