May 19, 2011 •
Governor Requests Lobbyists’ Contracts Terminated
Rhode Island’s Quasi-Public Agencies
Governor Lincoln Chafee has sent letters to the directors of Rhode Island’s 17 quasi-public agencies requesting, among other things, they terminate non-critical contracts with lobbyists. He is also requesting any procurement activities by these agencies be open and transparent, instructing the agencies to post all procurement rules and regulations applicable to each agency’s contract practices on a public website.
Governor Chafee indicates the purpose of the letters is to help find cost reductions that are available through increased efficiency and productivity, stating, “Under my appointment authority I take very seriously the responsibility of placing highly qualified individuals who strive to ensure value in the services provided by our quasi-public agencies.”
Some of the quasi-public agencies include the Rhode Island Industrial-Recreational Building Authority, the Rhode Island Airport Corporation, and the Rhode Island Health and Educational Building Corporation.
May 18, 2011 •
New Ethics Rules for Chicago
On Monday, May 16th Mayor Rahm Emanuel signed three new executive orders and reissued three additional executive orders.
The three reissued executive orders include a ban on political contributions to the mayor from the owners of companies that do business with the city, an order requiring city employees to comply with hiring oversight rules, and an order reaffirming that it is the duty of every city employee to report wrongdoing to the inspector general.
The first new executive order prohibits new appointees from lobbying city government for two years after leaving the administration, bars lower level employees from lobbying the departments or agencies in which they work, and bars appointees to boards and commissions from lobbying the board or commission on which they sit.
The second new executive order protects city employees from being pressured to give gifts or make political contributions to their superiors.
The third new executive order prohibits city lobbyists from making political contributions to the mayor.
May 13, 2011 •
Revolving Door Loophole Exposed
West Virginia’s ethics panel decided the law does not include independent contractors.
The West Virginia Ethics Commission has concluded it cannot prevent an employee of the Legislature from avoiding the state’s newly passed “revolving door” ban if he changes his status from an employee to an independent contractor before the law takes effect on July 1, 2011.
Under the pending law, elected officials and certain high-ranking unelected employees will be forbidden from acting as lobbyists for one year after leaving public employment. The commission decided this law does not include independent contractors.
This decision comes after a request for an opinion by legislative counsel Donnie Adkins. The commission said it “is troubled” by the proposed maneuver but would be unable to bring him within the revolving door ban as an independent contractor.
The West Virginia Ethics Commission offers the opinion on their website.
Here is the Charleston Gazette’s coverage in the story, “Ethics loophole a cause of concern” by Phil Kabler.
May 13, 2011 •
Providence Lobby Law Pushed Back to July 1
Date Change
RHODE ISLAND: The Providence Lobbying Disclosure Ordinance, which was to take effect May 16, will now take effect July 1. The City Council’s Committee on Finance amended the March 11 ordinance extending the time to begin the implementation of the regulations. The new ordinance requires lobbyist registration, reporting, ID badges, and penalties.
This report refers to the March 23 Lobby Comply post “Providence Creates Lobbying Registration Law” by George Ticoras.
Photo of the Providence, R.I. skyline by boliyou on Wikipedia.
April 25, 2011 •
Tennessee Senate Bill 1227 Becomes Law
Bill Signed by Governor Alters Reporting Dates for Employer Disclosure Reports
Tennessee Governor Bill Haslam has signed into law Senate Bill 1227, which revises the filing dates for lobbyist employer disclosure reports.
The bill requires that employer disclosure reports be filed within 45 days of June 30 and December 31.
The new law takes effect July 1, 2011, with the first employer disclosure report under the new law covering the time period from April 1, 2011 to December 31, 2011 having a filing deadline of February 14, 2012.
Photo of Governor Bill Haslam courtesy of the Tennessee Governor’s website.
April 19, 2011 •
Lobbyist Registration Fees on Rise in Texas?
Bill Containing Potential Lobbyist Registration Fee Increase Moving Through House
House Bill 3653, a bill concerning lobbyist registration fees, was brought before the House Appropriations Committee on Monday, April 18, 2011, as the bill moves closer to a vote before the full House.
The bill would provide for lobbyist registration fees of up to $1,000; however, lobbyist registration fees of up to $200 would be assessed if the lobbyist is employed by a 501(c)(3) or 501(c)(4) organization.
If passed, the bill provides for an effective date of September 1, 2011.
Photo of the Texas State Capitol by LoneStarMike on Wikipedia.
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 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.
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.