SENATE BILL REPORT

SB 5165

BYSenators Pullen, Talmadge and Rasmussen; by request of Public Disclosure Commission

Regulating lobbyists.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 30, 1989

Senate Staff:Jon Carlson (786-7459)

AS OF JANUARY 26, 1989

BACKGROUND:

The Public Disclosure Act provides for the registration and reporting by lobbyists and lobbyist employers.  The Public Disclosure Commission (PDC) suggests revisions to the disclosure laws that address the evolution of lobbying over the past decade.  The PDC cites several reasons for the suggested changes:  (1) law does not recognize the changes in lobbying techniques in recent years, particularly with respect to contract lobbying; (2) law does not hold the employer responsible until long after lobbying is completed; (3) the scope of activities to be reported is not clearly defined; and (4) there is a need to examine which lobbying activities and expenditures should be itemized.

SUMMARY:

The Public Disclosure Act is amended to update and clarify the registration and reporting requirements with respect to lobbyists and contract lobbyists.

Registration:  Lobbyists and contract lobbyists must register with the PDC within two weeks after being employed or assigned as a lobbyist.  Both the lobbyist and contract lobbyist must include in the registration statement his or her name, telephone number, business address of the employer, terms of compensation, and whether the employment is solely for lobbying or whether lobbying is only part of their duties.

Additional registration requirements include written confirmation of the lobbyist's employment by the chief executive officer of the employer; the employer's principal service or business activity; the issue or subjects of legislative or rule-making intent for which lobbying is authorized; and the name of any political committee which is closely affiliated with the employer.  The commission may require other information relevant to the registration and identification of persons who lobby or employ lobbyists.

Persons who are reimbursed for travel expenses are exempt from the registration requirements provided they spend no more than $50 for lobbying activities.  Also exempt are persons who only monitor legislative and agency activities or provide in-house advice, bill drafting and analysis.  The amount that the casual lobbyist may spend on lobbying activities while remaining exempt from registration is increased from $25 to $50.

Monthly Lobbyist Report:  A lobbyist must report to the PDC the total compensation and reimbursements paid to the lobbyist by the employer for lobbying services performed during the report period.  This includes amounts for direct and indirect contacts with legislators, legislative staff, state elected officials, and state officers and employees.  The amounts also include charges for services in researching issues, developing strategy, drafting bills and other activities which may reasonably be an integral part of lobbying.

Itemization is required on the report for expenditures on entertainment or gifts that are $50 or more in value.  The amount paid to other lobbyists, expert witnesses and subcontractors must also be itemized.

The reporting of campaign contributions is clarified, and the requirement of reporting local or federal contributions is deleted.  The amount spent for advertising, mailings, public relations campaigns, and special lobbying activities is also reportable.  It is clarified that in-kind contributions are reportable.

A monthly expense report is established for a contract lobbyist.  This requires reporting of the total amount received from the employer and expenditure details similar to those of a lobbyist.

Lobbyist Employer Report:  A lobbyist employer who expends more than $10,000 on lobbying from January through June must file a report with the PDC no later than July 31.  Each employer must file a report for the calendar year in which lobbying occurred not later than February 28 of the following year.  The report recognizes the employment of contract lobbyists, and requires the employer to report the total expenditures made for lobbying purposes through or on behalf of a contract lobbyist.  Any person paid $500 or more for lobbying or professional assistance for lobbying must be included in the report; however, this does not apply to lobbying or professional assistance which is the result of an appointment or other written request of the Legislature to participate in a study or provide particular expertise.

Special Lobbying Activities:  A separate report is established for lobbying activities such as rallies, receptions, parades, and mass mailings which may or may not be coordinated or arranged by a registered lobbyist.  The report must list who organized and who paid for the costs of the activity, together with an itemization of expenditures.  Any activity costing $2,500 or more is reportable within two weeks.

The definition of political advertising is expanded to include a program addressed to the public, a substantive portion of which is intended, designed, or calculated primarily to influence legislation.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 25, 1989