Plexus Consulting Group    Articles by Plexus Authors

Lobbying Law Changes

Author
Donald Baldwin



Publication Date
August 17, 2007




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The long talked about changes in the Lobbying Disclosure Act are about to happen when the President signs the optimistically titled “Honest Leadership and Open Government Act of 2007.”

Amendments adopted by the Congress to the Lobbying Disclosure Act of 1995 (LDA) will change Senate rules that regulate gifts to Senators and staff. It amends the federal criminal statue that defines lobbying restrictions for former government employees. The House has previously amended its own gift rules.

Left untouched are provisions covering so-called “earmarking” of funds added after appropriation bills are reported out of House and Senate committees with jurisdiction over funding for departments and agencies of the federal government.

The lobbying reform legislation makes only modest changes to substantive rules previously in effect. It leaves in effect the numerous exceptions to the congressional gift rules. But, the LDA dramatically increases the civil and criminal exposure of lobbyist and their employers.

Lobbying firms, corporations, and associations now registering under the LDA rules, will have to sign semiannual “certificates” stating that they have not violated any of the new House and Senate gift rules.

The new provisions of the updated LDA seem designed to push the Department of Justice into more active enforcement of the current loosely enforced LDA.

Under current LDA rules, it is much harder to legally take a Congressman or staffer to lunch. The “personal friendship” situation, or “widely attended” events, certain receptions, and, most certainly, fundraisers are alive and well. Lobbyists will still get the calls from the Senators and Congressmen for the thousand plus dollar fundraisers. No Congressman will be liable for violations under the new rules for asking for money from the lobbyists for campaigns, or whatever.

The changes in the LDA will require quarterly reports, within 20 days of the end of each quarter. Reports will have to list all political committees established or controlled by the organization or individual registrant or lobbyist. Also required under the new rules will be the names of PACs and political committees to which $200 or more was made within the semiannual reporting period for the PACs and committees. The dates of the contribution and the amounts must be reported.

The new LDA rules permit members of Congress to accept travel expenses offered by a lobbyist or employer only from charitable organizations for one-day events. If a Senator accepts travel from a lobbyist or organization under these restrictions the travel will have to be cleared by the ethics committee. No staffers will be allowed to accompany the Senators. House ethics rules generally prohibit travel on corporate and private aircraft.

If a Senator accepts transportation on a private aircraft from a lobbyist or employer they must pay regular charter rates. This applies to campaign travel although there is an exemption in the new LDA rules for federal candidates using aircraft owned or leased by them or their families.

The LDA rules also cover the “cooling off” period, which requires congressional employees to not lobby congress for one year. But, they can provide “behind the scenes” legislative advice to their private sector clients and employees. The “cooling off” period for Senators has been extended from one to two years. House members are subjected to a one-year “cooling off” period.

When the new law is in full operation it will require more extensive and more easily searchable publication of lobbying disclosure information on the Internet. After a shakedown period the new law will require online publication of Foreign Agents Registration Act registrations and reports for the first time. Media and watchdog groups will find it easier to track and critique lobbying activity.