HOUSE BILL REPORT

SHB 782

BYHouse Committee on Constitution, Elections & Ethics (originally sponsored by Representatives Fisher, Nelson and Locke)

Changing reporting requirements for lobbyists.

House Committe on Constitution, Elections & Ethics

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (5)

     Signed by Representatives Fisher, Chair; Pruitt, Vice Chair; Fisch, Leonard and Sanders.

Minority Report:     Do not pass.  (2)

     Signed by Representatives Amondson and Barnes.

House Staff:Kenneth Hirst (786-7105)

AS PASSED HOUSE MARCH 17, 1987

BACKGROUND:

The public disclosure statutes define "lobbying" as attempts to influence the passage or defeat of any legislation by the state Legislature or the adoption or rejection of any rule, standard, rate, or similar act of a state agency under the state administrative procedure acts.

Although persons who lobby are required to register with the Public Disclosure Commission, exemptions from this requirement are established by law for a number of lobbying activities. Reports filed by lobbyists must identify expenditures made for certain lobbying activities.  Reports filed by the employer of a lobbyist must identify the total expenditures made by the employer for lobbying purposes.

SUMMARY:

The activities are broadened for which expenses must be reported by a lobbyist and by the employer of a lobbyist in reports filed with the Public Disclosure Commission.  Such lobbying activities include the development of legislation or rules, the development of support for or opposition to legislation or rules, and attempts to influence the development of legislation or rules.

The annual report of the employer of a lobbyist must include the total expenditures made by the employer for each such lobbyist for lobbying purposes.  For each registered lobbyist employed by the employer for lobbying purposes by means other than by contract, the report shall also include the total of all office expenses, including rent and the salaries and wages paid for staff and secretarial assistance, incurred directly for lobbying purposes.

EFFECT OF SENATE AMENDMENT(S):  The Senate amendments remove a requirement established by the substitute house bill that a person who employs a registered lobbyist by means other than by contract identify for reporting purposes the total of all office expenses incurred directly for lobbying.

The amendments also:  (1) prohibit a registered lobbyist from entering into an agreement under which the lobbyist's compensation is contingent upon the success of any attempt to influence legislation; and (2) prohibit a registered lobbyist, or a business with a lobbyist as one of its principal owners or partners, from entering during a legislative session into a personal services contract with the legislature, a committee, office or officer or employee of the legislature, the executive branch, or any officer or employee of the the executive branch or any state agency.

Fiscal Note:    No Impact.

House Committee ‑ Testified For:     Chuck Sauvage, Common Cause; Graham Johnson, Public Disclosure Commission.

House Committee - Testified Against: Joan Gaumer, Blue Cross of Washington & Alaska; Celia Fritz, Public Affairs Associates; Joe Brennan, Sea-First; Geoff Gibbs.

House Committee - Testimony For:     (1) The bill properly makes a distinction between contract lobbyists and other lobbyists.  It will allow people to trace the flow of money. (2) Repealing the 1982 amendments which restrict the expenses that a lobbyist must report is a step in the right direction. (3) The bill reflects that there is much more indirect lobbying, lobbying that does not involve direct contact with legislators, now than when the initiative establishing the disclosure requirements was adopted.

House Committee - Testimony Against: (1) The bill will result in a fruit salad of reporting by lobbyists; the expenses reported by one lobbyist for something such as office costs may be different than those reported by another without there being a difference in the lobbying activities of the two lobbyists. (2) The reporting of office expenses will create a difficulty in determining to which client certain expenses should be attributed and will inflate the total expenses reported giving the public the impression that all of the expenses were for wining and dining legislators. It will result in over-reporting expenses. (3) Lobbying reporting requirements are not uniform; some people do not have to register as lobbyists and the expenses of lobbying by public agencies are largely unreported because their reporting requirements are different. (4) How is one to determine when legislation is being "developed" and, therefore, a reportable activity under the bill?

VOTE ON FINAL PASSAGE:

     Yeas 84; Nays 11; Absent 2; Excused 1

Voting Nay:     Representatives Amondson, Barnes, Brooks, Chandler, Fuhrman, Grant, Hankins, May, Moyer, Nealey and Padden

Absent:    Representatives Cantwell and Hine

Excused:   Representative C. Smith