Earlier this month, Virginia Governor Terry McAuliffe signed into law a new bill making significant changes to Virginia’s lobbying and gift laws. The critical changes made by this bill, Senate Bill No. 1424, will become effective on January 1, 2016. Many of the revisions focus on gift reform, but the bill also contains important changes affecting lobbying as well as pay-to-play compliance. Continue Reading Virginia Tightens the Reins: Major Lobbying and Gift Law Changes to Take Effect in 2016
Following a major rewrite last year of its “pay-to-play” disclosure rules, Maryland has made further changes that expand the obligations of state and local government contractors to report their political contributions, and those of their subsidiaries, officers, directors, partners, and PACs. Now, in addition to reporting direct contributions to candidates, contractors will also have to disclose contributions made to independent expenditure groups and political parties that are “for the benefit” of covered candidates. The new law also changes reporting deadlines, and clarifies that companies holding state or local contracts awarded prior to January 1 must file disclosure reports until performance is complete.
The contribution disclosure requirements for lobbyist-employers will also change so that the two disclosure regimes mirror one another.
These new changes take effect on June 1, 2015, just five months after the last round of changes and the rollout of a new online reporting system.
First quarter lobbying disclosure reports are due on Monday, April 20. This report, the LD-2, is where organizations report their expenses for federal lobbying efforts. The first quarter of a year is often a good time to evaluate your organization’s recordkeeping and processes for filling out the report and to determine what changes may need to be made. Keep in mind these key aspects of preparing the report: Continue Reading First Quarter LD-2 Reports Deadline Approaching
Thursday, March 26, 2015
1:30 p.m. – 2:30 p.m. ET – Webinar
The Justice Department recently announced its first criminal prosecution for coordination. States like Virginia are revamping their ethics laws and California recently imposed new restrictions on lobbyists. Although the IRS has yet to issue regulations for 501(c)(4)s, many states have created new disclosure requirements for politically active nonprofit groups. Maryland has imposed tough new disclosure requirements on state contractors that make campaign contributions. Continue Reading Please Join Us: WEBINAR – Ramping up for the 2016 Cycle: Make Compliance a Priority for Lobbying and Political Activity
California’s ethics watchdog, the Fair Political Practices Commission, adopted a new rule that prohibits lobbyists from hosting fundraisers in their homes. This rule implements legislation passed after a lobbyist was fined for hosting what the LA Times called “lavish fundraisers” featuring “wine, liquor, and cigars,” in his home. Lobbyists in California are prohibited from making campaign contributions, but the statute previously exempted from the definition of a “contribution” the use of one’s home for a campaign event, along with$500 for food and drink. The legislation eliminated this exemption, providing that any “payment made by a lobbyist or a cohabitant of a lobbyist for costs related to a fundraising event held at the home of the lobbyist, including the value of the use of the home as a fundraising event venue,” is now a contribution.
When Arkansas legislators gave voters a chance to approve a constitutional amendment banning corporate contributions and gifts from lobbyists, even the referendum’s sponsor thought it was doomed. Why? Because coupled with these reforms was a provision extending legislators’ term limits, a measure so unpopular that voters had previously rejected it by a 40-point margin. Indeed, a committee opposing the referendum brought a 10-foot wooden horse to campaign events to help convince voters that the only real intention of the referendum was to get rid of term limits.
Whatever the motivations – which at times were hard to discern as the Republican legislature that placed the referendum on the ballot later passed a resolution to oppose it – the referendum passed last week with 53% of the vote. It makes a number of important changes in Arkansas law, including: Continue Reading Welcoming the Trojan Horse: Arkansas Voters Approve Term Limits, While Banning Corporate Contributions and Lobbyist Gifts
Yesterday, we focused on the honoring and recognizing categories of expenses that have to be reported. There are also three other categories that have to be disclosed on the LD-203 report.
- Political Contributions: Contributions made by registered lobbyists, the connected PAC of a registrant, or a PAC controlled by a lobbyist must be disclosed on the LD-203 if:
- the aggregate contributions to an entity equal or exceed $200 during the six-month reporting period; AND
- the recipient is a federal candidate, leadership PAC, or federal political party.
Contributions to other PACs (e.g., a trade association PAC or a company’s connected PAC) from a lobbyist do not have to be disclosed. State contributions also do not have to be disclosed.
- Presidential Library Foundations: If contributions to a presidential library foundation aggregate to $200 or more during the six-month reporting period, they must be disclosed.
- Presidential Inaugural Committees: Contributions that equal or exceed $200 during the six-month reporting period must be disclosed. The Guidance makes clear that this includes payments to the official Presidential Transition Organization. It also would include payments to the official inaugural committees for tickets to inaugural events, but would not include payments to other entities that host inaugural events (e.g., a state society).
The LD-203 requires registrants and lobbyists to disclose a variety of payments made for the purpose of honoring and recognizing covered officials. Guidance issued by the House and Senate includes some very helpful examples.
Payments that need to be disclosed fall in four different categories.
- The cost of an event to honor or recognize a covered legislative branch official or covered executive branch official;
- Payments to an entity that is named for a covered legislative branch official, or to a person or entity in recognition of such official;
- Payments to an entity established, financed, maintained, or controlled by a covered legislative branch official or covered executive branch official, or an entity designated by such official; or
- The costs of a meeting, retreat, conference, or other similar event held by, or in the name of, one or more covered legislative branch officials or covered executive branch officials. Continue Reading Honoring and Recognizing
The end of the second quarter is a good time to terminate individuals who will no longer serve as lobbyists because they can end their LD-203 obligations with this mid-year report. If the individuals do not have a reasonable expectation of being a lobbyist in the current or next quarter, then the Guidance says that the individual may be terminated. A lobbyist is someone who has made more than one lobbying contact (ever) and spends more than 20 percent of his or her time on lobbying activity in a three-month period. Thus, if an individual is changing roles, or the organization has determined that the person does not (and will not in the next quarter) spend 20 percent of his or her time on lobbying activity, then termination is appropriate. Remember, an organization can always re-list the person if things change. Continue Reading To be a Lobbyist or not to be a Lobbyist
For what seems like such a simple question, many organizations have a very hard time calculating the amount they spend on lobbying activities.
A few reminders might help:
- Include any payments to outside lobbying firms in this figure. Even if it seems like double counting (since those firms will report the amount they receive from your organization), the LDA and guidance are clear that payments to lobbying firms must be included. Continue Reading Reporting the Amount Spent on the LD-2