A bill requiring lobbyists to report activity even when the Legislature is not in session has been introduced by Senator Sheila Leslie. Currently, a lobbyist need only report activity occurring while the legislative body is actually in session.

Nevada’s Legislature generally meets in the first half of odd-numbered years. Senate Bill 0206‘s additional reporting requirements necessitate lobbyists report all lobbying activities after the end of the third and fourth calendar quarter of each odd-numbered year and each calendar quarter of each even numbered year, whether or not any expenditures were made.

The bill also extends the definition of lobbyist to include one who lobbies where an interim committee holds meetings.

Q: Now that Illinois has semi-monthly reporting, are there any changes to the contents of the report?

A: As of January 1, 2011, Illinois requires disclosure reports to be submitted on the fifth and 20th of each month.  This new schedule began on January 20, 2011.  The Secretary of State’s Office issued a 2011 Expenditure Report Filing Guide concerning how to disclose reportable activity on the Activity Detail Report.  This guide contains some changes for client or lobbying entity reporting.

Individual expenditures made on behalf of covered officials must be itemized with expanded information.  Lobbying entity reports must itemize for each individual expenditure or transaction:

• The name of the official for whose benefit each expenditure was made;
• The name of the client on whose behalf the expenditure was made;
• Whether the expenditure was made on behalf of a client;
• The total amount of the expenditure;
• A description of the expenditure;
• The vendor or purveyor to whom the expenditure was made;
• The address and location of the expenditure if the expenditure was for an intangible item such as lodging;
• The date on which the expenditure occurred; and
• The subject matter of the lobbying activity, if any.

As in previous years, the expenditure reports must also include reporting of lobbying activity that is unrelated to an itemized expenditure.  This requirement is satisfied by identifying:

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The State Ethics Commission has created a ‘Debtors’ page on its web site, posting the names of lobbyists, lobbyists’ principals, public officials and others who have failed to pay late filing penalties and enforcement fines. The commission hopes to use this publicly available consolidated listing to help ensure compliance with the registration and disclosure requirements under the campaign finance and lobbying laws of the state.

The penalties owed range from $732,400 all the way down to $10. The page includes contact information for anyone appearing in the list to arrange for payment.

Senator James Arnold has introduced a bill which would require persons seeking business relationships with local jurisdictions and their agencies to register and report activity and expenditures as lobbyists, whether or not the local jurisdictions have ordinances dealing with lobbying. Senate Bill 0330 defines ‘business relationship’ to include pecuniary interest contracts and purchases with an agency with an aggregate value of at least $100,000.

The bill calls for the reporting to be filed with the local county clerks where the lobbying activity occurs. A $100 a day late fine would be imposed for each day a lobbyist misses his or her filing date and lobbyists knowingly failing to register or file would face a Class A infraction.

The bill also allows local jurisdictions to adopt ethics ordinances and establish ethics commissions.

Map of Indiana by Jim Irwin on Wikipedia.

Because of a technical malfunction, the Illinois Secretary of State‘s reporting system was unavailable from January 16th until early on January 18th. Accordingly, the Index Department has extended the deadline for reporting expenditures made in the first half of January.

Instead of being due on January 20th, those required to file reports now have until January 23.

Q.  If my employer hosts a function to which all members of the state legislature are invited, must I disclose the name of each individual legislator attending, or can I merely reference the fact that all members were invited?

A. This is a very common occurrence for most lobbyists: to pay for events where all members of the legislature, or some other identifiable group, are invited. The reporting implications for such events range from simple aggregate disclosure to detailed reporting where the name of every legislator attending must be listed. The key to accurate reporting is to know how the state defines “all invited” and whether it takes into consideration any type of “sub-group.”

Here is a representative summary of the varied reporting requirements you might encounter with this type of event:

Arizona – All expenditures incurred by a principal or lobbyist for a special event for legislators – including parties, dinners, athletic events, entertainment, and other functions – to which all members of the legislature, either house of the legislature, or any committee of the legislature are invited must be reported. These expenditures do not have to be reported based on the cost per legislator. However, a description of the event, date and location of the event, number of persons invited, and total expenditures must be reported.

Arkansas – A “special event” is a planned activity to which a specific governmental body or identifiable group of public servants is invited. One of the unique aspects of Arkansas disclosure in this situation is that if the event has multiple co-hosts, the names of all other lobbyists sharing in the cost of the event must be reported.

Also in Arkansas, hospitality rooms may be reported as a “special event” provided the lobbyist invites specific governmental bodies or identifiable groups of public servants. When reporting hospitality room expenses, the lobbyist must itemize the date the hospitality room was open; the name of the event hosted; the exact amount paid by the lobbyist towards the total expenditure for the hospitality room; and the names of all other lobbyists sharing in the cost of the room.

Georgia – Aggregate expenditures on food, beverages, and registration at group events to which all members of an agency, including the legislature and its committees and subcommittees, are invited must be disclosed. Also, if an expenditure is made on behalf of a public official and is simultaneously incurred for an identifiable group of public officials, the individual identification of whom would be impractical, the name of the individual official need not be disclosed. A general description of the identifiable group will suffice.

Louisiana – For legislative lobbying, the following must be invited before invoking group disclosure: the entire legislature; either house; any standing committee; select committee; statutory committee; committee created by resolution of either house; subcommittee of any committee; recognized caucus; or any delegation thereof. Disclosure includes the name of the group invited; the amount, date, and location of the event.

For executive branch lobbying, group disclosure is when more than 25 executive branch officials are invited to a reception, social gathering, or other function. The name of the event, amount, date, and location must be reported.

Utah – In Utah, food or beverage expenditures must be reported if the aggregate daily expenditures benefitting the public official are greater than $25, unless the food or beverage is provided in connection with an event to which all of the members of the legislature, a standing committee, interim committee, legislative task force, or a party caucus are invited.

Washington – Washington does not provide for group reporting. Even if all members of the legislature, or all members of any sub-group within the legislature, are invited, every individual person must be listed by name if the expenditure exceeds $25 per occasion (which it usually does when group events are involved).

If two or more lobbyist employers share the expenses of a reception or other entertainment event, the lobbyist primarily responsible for organizing the event must disclose on his or her monthly L-2 report the names of the legislators (and members of their immediate families) attending the group event. Rather than duplicating this list of attendees, the L-2 reports filed by the lobbyists of the other employers sponsoring the event may make reference to the lobbyist’s report that contains these details.

We have not listed rules for all the states, only examples of some states. If you have a question on a state not listed here, please contact us directly at 330-761-9960.

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. Once I complete my lobbyist registration, what other obligations do I have in my state?

A. Filing lobbyist and/or principal disclosure reports is the bare minimum requirement in many states.  In addition, you may be required to obtain an ID badge.  Some states require mandatory lobbyist training on a regular basis.  Most often, this can be done online.  To date, the states requiring this are: Alaska, California, Illinois, Louisiana, Maryland, Massachusetts, Tennessee, Utah, and West Virginia.

Many states have different gift law limitations for lobbyists.  For example, in Texas lobbyists are permitted to give gifts of $500 or less, while public servants may accept non-cash item of less than $50 from non-lobbyists.

In addition to reporting requirements, states may require pre- or post-notification to officials when an expenditure has been made on his/her behalf which is disclosed on a lobbying report.  In Illinois, a lobbyist who makes an expenditure on behalf of an official must inform him/her, in writing, at the time the expenditure.

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.

Amber Fish Linke is the Compliance Manager for State and Federal Communications, Inc.

The enhancements to the system are aimed toward improving transparency and easing the public’s fear of “back room” politics.  It is no coincidence that the lobbying law changes come at the same time the state is strengthening ethics rules in other arenas.  The state recently passed new disclosure requirements for contacts with procurement officials.  Additionally, Illinois’ campaign finance laws will feature contribution limits in 2011 and quarterly PAC reporting.   The improvements to the state’s lobbying regulations are part of an overall climate of increasing disclosure around the United States.  Several other states, including Utah and Georgia, have made similar changes in state lobbying law this year.

The first change to the rules, which is already known by most people impacted by it, relates to the registration fee.  Illinois initially sought to increase this fee to $1,000 per lobbyist and per organization employing a lobbyist.  Thus, a company with two state-level lobbyists would have been charged $3,000 per year.   The ACLU sued for and was granted an injunction on this fee.  Essentially, the state agreed Illinois could not demonstrate the increase in cost was necessary to administer the Lobbyist Act.  Additionally, the ACLU had raised a First Amendment establishment clause argument because the bill granted exemptions to certain religious lobbying and thus “demonstrated a preference for religious speech over non-religious speech.”  Eventually, the state and the ACLU agreed to a fee of $300 and the suit was dropped.   Additionally, lobbyists are required to complete an online ethics training course within 30 days of registration.

Lobbyists will have to report more frequently in 2011 and beyond.  The lobbying dates used to be tied to whether the legislature was in session but are now semi-monthly, regardless.  In 2010, while the litigation on the Act was pending, reporting was done essentially as soon as the Secretary of State’s Index Department was able to receive them in the midst of the judicial and legislative melee.  Lobbyists filed a report on September 30 for the first half of 2010, and now must report second-half expenditures on January 15, 2011.  Starting in 2011, reports are due twice per month.  A report for the first 15 days is due on each 20^th, and a report covering the 16^th through the end of each month is due on the following 5^th.  While this is very cumbersome, it is at least consistent.  The smaller reporting periods should make the information to be reported very manageable.

One feature of Illinois’ lobbying seen in a few other states is the provision relating to notification of officials.  Previously, if an official were set to appear on a lobbyist’s report because that lobbyist made an expenditure on the official, the lobbyist was required to give the official notice of this fact 25 days before the report was due and again 30 days after the report was filed.  Under the new changes, the 30-day post-notification remains but the pre-notification is changed.  Now, lobbyists must give the official “contemporaneous written notification” of a reportable expenditure made on the official’s behalf.

Photo of Gov. Pat Quinn by Chris Eaves on Wikipedia.

Similar legislation was voted down last month. If the ordinance passes, anyone who lobbies the county board on behalf of someone else will be required to register annually and report on whose behalf he or she is lobbying. The call for lobbyist disclosure in Orange County comes after a county grand jury issued a report critical of the county supervisors for not having any lobbyist disclosure requirements. Several local political figures have implicitly threatened to have a lobbyist registration law placed on an upcoming ballot if the supervisors do not create it themselves.

Photo of Newport Center skyline and Santa Ana mountains by Brian 1078 on Wikipedia.

The Texas Ethics Commission has issued a public notice to all lobbyists registered with the commission. The commission advises all filers to install the newest lobby electronic filing software, version 2.5.3, prior to filing a lobby activities report. In Texas, lobbyists required to register with the commission may include corporations, partnerships, association or other types of business entities as well as individuals.

The new software will be available for download on the Ethics Commission website beginning December 1, 2010 at: www.ethics.state.tx.us/whatsnew/elf_info_lobby.htm

Image of the Seal of the State of Texas by Juan Vega on Wikipedia.

Although the provisions of the bill were enacted as a new and separate chapter in the Louisiana Revised Statutes, they largely mirror the requirements of the lobbying laws already applicable to legislative and executive branch lobbying on the state level.  For example, as it is on the state level, registrations expire on December 31^st of each year and registration renewals are due on January 31^st at the latest.  Reports of local lobbying activity are due on the 25^th day of each month, as they are at the state level.  And the information required to be disclosed is largely the same.

The bill contains a provision found in the state executive branch lobbying law, but not in the legislative branch lobbying law, which allows an employer to file reports on behalf of all the lobbyists representing that employer’s interests.  An employer wishing to exercise that option must notify the board of ethics by January 31^st.

Unlike the state-level lobbying laws, the bill does not specify a registration fee for local lobbyists.

The Louisiana Board of Ethics is responsible under the bill for administering and enforcing the provisions of the bill.  This includes educational activities and seminars related to the bill, as well as the assessment of late filing fees.

State and Federal Communications will continue to monitor developments with regard to local lobbying laws in Louisiana as the bill goes into effect and is implemented by the board of ethics.

Photo of the Louisiana State Capitol by Bluepoint951 on Wikipedia.

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.

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.

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.