Q: We are currently reviewing our process for complying with the various reporting requirements established under the Lobbying Disclosure Act (LDA) and would like some advice on how we can improve our accuracy moving forward. I don’t think we have been capturing all the relevant expenditures that we need to include. Can you review what expenditures are required to be reported on the LD-2 quarterly activity report?

A: Thank you for your question. I applaud your effort to review and improve upon your existing processes.  Continually taking a look at how and what information is being compiled is an important part of any comprehensive compliance process. The LDA requires registrants to provide a good faith estimate of all lobbying expenditures within the organization on a quarterly basis. This seemingly simple requirement can prove to be somewhat complex given the number of moving parts involved in accurately reflecting reportable expenditures.

Relevant expenditures required to be included in the organization’s quarterly calculation:

1. The value (including compensation and associated overhead and expenses)  of any and all employee time spent on lobbying activities. This includes employees who spend 20% or more of their time engaged in lobbying activities (and are, therefore, listed by name on the report thereby becoming a “registered lobbyist”) and those who do not meet the statutory definition of a “lobbyist” (employees with activity below 20% during the quarter – non-lobbyists).

While it is often straightforward to collect this information for your registered lobbyists, it can be more nuanced to properly capture this activity for those folks under the 20% threshold. Non-lobbyist activity can come in many forms.  Generally, it includes direct (with a covered official) and indirect (internal or with an outside organization) communication such as planning activities, research, coordination, conference calls, meetings, strategy discussions and any other work that is undertaken to augment or further the lobbying objectives of the organization.

Examples of capturable indirect activities:

Research and/or preparation of talking points to be used in connection with a lobbying contact with a covered official.

Engaging in an internal discussion regarding strategic lobbying plan to support organization’s position on proposed legislation or administrative policy.

Drafting bill language, presentations, or letters to be shared with Covered Officials regarding federal policy or administrative actions.

CEO or other leadership meeting with or otherwise communicating with covered officials on the Hill or in the Administration.

Participation with an outside organization to accomplish any of the above listed ends.

2. Payments accrued to outside lobbyists and lobbying firms;
3. Federal lobbying portion of any dues or other payments made to trade associations, membership organizations and the like.

As you undoubtedly know, there are a variety of subtle reporting details that organizations must review and understand when establishing processes and procedures to ensure compliance with the federal law.  For tailored advice centered around your organizational realities, contact us directly for assistance. In addition, details regarding reporting requirements can be located in the Federal Lobbying Compliance Law section of our online publication resource.

The Kentucky Legislative Ethics Commission reports they have lost all data from their database for employers and lobbyists back to March 18.

Any forms filed online since March 18 will need to be refiled.

This includes all March 1 to March 31 forms due on Monday, April 15.

Because of the loss of data, the Legislative Ethics Commission is granting an extension through April 30 to re-file any previously filed reports that were lost.

If you file online after Monday, April 15, the system automatically issues a late notice on your screen.

The commission indicates filers can ignore the notice.

Paper filers do not need to take any action.

Although the portal is back up and working, the commission recommends waiting until Monday, April 15 or after to re-file reports.

Additional information is available at https://klec.ky.gov/Pages/default.aspx.

The Washington Public Disclosure Commission (PDC) has raised the threshold for reporting last-minute contributions from $1,000 to $1,500.

Contributions of or exceeding $1,500 that occur within seven days of a primary election and 21 days before a general election must be reported separately by both the contributors and the campaigns who receive them.

Once the threshold is reached, contributors must file with the PDC a last-minute contribution report within 24 hours of reaching the threshold, while recipients have 48 hours to report the contribution.

The Maine Ethics Commission announced it would hold a three-hour course covering recent changes to the law governing the registration and reporting requirements for political committees.

The course will take place on October 18, both in-person and over Zoom, from 9:00 a.m. to 12:15 p.m.

Registration for the course is available online and a recording of the training will be available on the commission’s YouTube channel.

Effective September 28, New Hampshire House Bill 263 increases contribution limits and reporting, registration, and itemization threshold amounts for political committees.

The bill limits contributions to PACs to $10,000 and raises the registration and reporting threshold for those committees to $1,000 from $500.

Additionally, PACs will need to itemize expenditures and contributions of $50 or greater and provide more detailed information about contributors who give $200 or more, an increase from the current $25 and $100 thresholds.

Minnesota Gov. Tim Walz signed House File 1952 amending campaign finance disclosure laws by requiring reporting of contributions, campaign expenditures and independent expenditures made to certain local candidates or ballot issues.

The bill defines local candidate as an individual who seeks any county office in Hennepin County; any city office in any home rule charter city or statutory city located wholly within Hennepin County and having a population of 75,000 or more; or the school board in Special School District No. 1.

Cities included within the definition of local candidate include Minneapolis, Bloomington, and Brooklyn Park.

The bill also amends the definition of public official to include a chancellor or member of the Board of Trustees of the Minnesota State Colleges and Universities.

The bill also amends the requirements for filing and contents of statements of economic interest.

These amendments will be effective January 1, 2022 and apply to reports and disclosures required to be filed with the state Campaign Finance and Public Disclosure Board on or after that date.

Cincinnati City Council failed to adopt an ordinance proposing additional campaign finance disclosure.

Ordinance 2021-01549 would have required the mayor and City Council members to report contributions above $200 within 48 hours.

Only Council Member Greg Landsman, who introduced the proposal, voted to adopt the ordinance.

Washington Lawmakers adjourned sine die after the Democratic-led Legislature passed many progressive initiatives during the 105-day session.

Police reform, climate change, and a $59 billion two-year spending plan were among the highlights of the session.

A bill to require 24-hour reporting of grassroots lobbying expenditures did not pass.

Gov. Brad Little signed a bill amending reporting requirements for independent expenditures.

House Bill 104 requires reporting of the identity of the candidate or measure and whether the expenditure was made in support of or in opposition to the candidate or measure.

The bill becomes effective July 1.

Gov. Greg Gianforte signed a bill revising campaign finance reporting deadlines for municipal candidates and political committees.

House Bill 71 amends the reporting dates for a political committee participating in odd-year municipal elections to the 30^th of June, July, August, September, October, and November of the election year.

The bill became effective when signed on April 8.

The City Council in Aurora, Colorado passed an ordinance to create lobbyist registration and reporting requirements in the city.

Ordinance 2021-08 requires lobbyists to register their clients and income with the City Clerk and submit quarterly, detailed activity reports by January 15, April 15, July 15 October 15 of each year.

City council members, city staff, commission members, and zoning officials will also have to disclose activities with lobbyists.

Lobbyists who do not comply with the regulations could lose the ability to influence city officials on matters from development to zoning rules, permits, and city contracts, face possible expulsion and up to $2,500 fines per charge.

The ordinance passed on March 22 with one nay vote.

Ordinance 21-08 will become effective on August 1, 2021. This effective date was suggested to allow time for the implementation of a platform the city will use for reporting and developing training materials.

On February 24, the New York Joint Commission on Public Ethics plans to open the online Lobbying Application.

Additionally, the commission will post updated paper forms for the submission of bimonthly reports.

The writable PDF forms will be available to paper filers on the JCOPE website.

Due to changes in the lobbying regulations and to the online filing system, JCOPE is also allowing additional time to file bimonthly reports due in March.

Bimonthly reports covering the January 1 to February 28 reporting period will be considered timely if submitted by March 22.

The online system was also updated to improve functionality, transparency, and the filing process.

Changes made include removing the auto-population of lobbying activities reported on a registration to the filer’s bimonthly report; allowing filers to add additional information to an existing party name; adding a comprehensive drop-down menu of itemized expenses; an updated parties lobbied database; and also adding an expense chart for reporting coalition contributions by members of unstructured coalitions.

In furtherance of transparency, Puerto Rico Gov. Pedro R. Pierluisi passed an administrative order establishing registration and reporting requirements and creating new prohibitions for lobbyists and lobbyist firms engaging with the House of Representatives.

Administrative Order 2021-03 directs the House to create and maintain a registry in which persons and entities must register and report detailed information related to their lobbying efforts.

The administrative order establishes disclosure requirements in which lobbyists and lobbying firms must, at the beginning of contact with the House, provide the identity of the client or clients on whose behalf they are carrying out lobbying efforts.

No later than July 1 and December 31 of each year, the order establishes that every person or entity registered as a lobbyist must submit a report before a Public Notary.

The order also prohibits natural or legal persons from working as a lobbyist while a contract with the Legislative Assembly of Puerto Rico is in force and bans any natural or legal person who has been convicted or has pleaded guilty in the state or federal forum, or in any other jurisdiction, from lobbying the House.

The Nashville Office of Metropolitan Clerk’s new online reporting portal will not be launched prior to the 2021 reporting due date.

The clerk’s office has indicated those lobbying activity reports should instead be emailed to the clerk’s office on or before the January 31 due date.