Post on 30-Dec-2015
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Significant Changes to Lobbying Law
October 15, 2009
James A.W. Shaw, Esq.
Segal Roitman, LLP
Introduction to Lobbying
Summary of Current DefinitionUnder Existing Law
A Lobbyist is a a person who for compensation
acts to influence legislation, or the governor’s approval/veto of legislation.
and/or an
a person who for compensation acts to influence the decision of any officer or employee of the state executive branch concerning legislation, state regulations, or procurement decisions.
Note: Involves some contact.
Client vs. Lobbyist Entity
• : an individual or business entity that contracts with another individual or business entity to receive lobbyist services. A union can be a client.
• : an entity providing lobbyist services, consisting of at least one legislative or executive agent. A union cannot be a lobbyist entity unless it provides lobbying services to organizations other than itself.
Regulating Lobbyists
• Lobbyists in MA are currently monitored by the Secretary of State’s Office
• However, recently MA lobbying laws have been accused of being too weak/undefined, prompting new legislation
• What is monitored:• Who is Lobbying
• Hours Spent Lobbying
• Money earned from Lobbying
• Gifts given to officials from Lobbyists
• Type of Lobbying being done
• Which Lobbyists/ Lobbying Entities are associated with which client
In the News…Leaders Approve Ethics Revamp
Don't Pay More for Business as Usual
Despite Ethics Bill, Lobbyists Carry On
Patrick Signs Ethics Bill Into Law
“This bill will give us the tools we need to promote ethics in government. It’s a terrific bill, and I’m very pleased.’’ - Ethics Commission Chairman Charles Swartwood
“There’s no doubt there’s been a lot of lobbying on the lobbying bill by the lobbyists’’ -Secretary of State William F. Galvin
“Our political process in Massachusetts is not for sale. Those trying to use corrupt practices and bribery will be caught and will be
punished.’’ - Representative Peter V. Kocot, Chairman of the House
Committee on Ethics
The Bill:An Act to Improve the Laws Relating to
Campaign Finance, Ethics and Lobbying
The New Law• Signed into Law by Gov. Patrick on July 1, 2009
• Will go into effect January 1, 2010 (had been 9/29)
New Definition of Lobbying
Present Law
• Contact with State Public Officials
Under New Law
• Contact with State Public Officials
• Strategizing• Planning• Researching• Background Work(when connected w/ an actual
communication)
Lobbying or Not?
The Executive Board of Local 1000 wants to convince their state representative to support an increase to the state minimum wage. The E-Board meets to discuss what their President will say in a meeting with their state rep. The meeting eventually takes place.
This counts as lobbying under the new definition for any E-Board member who is: (a) paid for their work; and (b) has at least one communication with a state official.
New Definition of Lobbying
Lobbying or Not?
The Local 1000 E-Board debates at its monthly meeting what its legislative priorities for the year should be – should the union support health care reform, casino gambling, or both – and communicates those priorities to a state official.
This counts as lobbying under the new definition, assuming it results in actual communication with a government employee.
New Definition of Lobbying
Lobbying or Not?
The Local 1000 E-Board debates whether to endorse Deval Patrick or Tim Cahill for Governor.
This time does not count as lobbying under the new definition, because it was not connected to an actual communication with a government employee.
New Definition of Lobbying
New Definition of LobbyingLobbying or Not?
The president of Local 1000 receives a request from the local state senator for information about wages and working conditions of the union members as part of a debate over whether to reform public-sector labor laws. The president responds with a letter.
This does not count as lobbying because it was a written response to a request for technical advice or factual information.
Lobbying or Not?
A delegation of union leaders meets with the Mayor of Boston to ask that he support an increase to the state minimum wage.
The time spent at this meeting is lobbying, and so was time planning for it. Even though the communication was with a municipal official, the goal was to influence state legislation, and thus counts as lobbying under the new law.
New Definition of Lobbying
Allowable Incidental Lobbying
Present Law No Need to Register as Lobbyist if:
• 6 Month Period• 50 Hours or Less
• Earn Less than $5,000 (pro rata share of salary)
New LawNo Need to Register as
Lobbyist if:
• 6 Month Period• 25 Hours or Less
• Earn Less than $2,500 (pro rata share of salary)
A point of clarification needed
Is registration required if someone’s combined executive and legislative lobbying exceeds the incidental threshold?
-or-Is registration only required only if
someone exceeds the incidental threshold for either or both executive lobbying?
Advisory Opinions
Present Law
• Secretary of State does not have this power
New Law
• Secretary of State can provide citizens with written opinion
• If followed in good faith, one cannot be prosecuted for lobbying violations
Your New Obligations
Registration ProcessHow:• Electronically (Request User ID
and Password in writing or email from Sec. of State’s Office)
• or by paper
When:• Annually• By December 15 for
upcoming calendar year
Who Needs to Register:•Each employee qualified as a lobbyist
•The union as a “Client”
FilingFee
(Paper)Fee
(Electronic)Lobbyist Registration $100 $109Client Registration $100 $109Lobbyist Entity Registration $1,000 $1,045
Penalty fee for late Reporting filing within 10 days $250 $265Penalty fee for late Reporting filing after 10 days $500 $520
Examples
• Sarah • Works full time for a union
• Lobbying only part of her job
• Must pay $100 to register herself for one year (union can reimburse)
• The union is considered a “Client” (it was not created to provide lobbyist services)
• The union must pay $100 for each of its employees like Sarah.
• Don• Full time lobbyist for
MegaLobbyist Association, Inc.
• Must pay $100 to register himself for one year
• MegaLobbyist Association, Inc. must pay $1,000 to register itself as a Lobbyist Entity.
• Local 1000• Hires Don and MegaLobbyist Association, Inc. to lobby• Local 1000 is a Client and must pay $100 for each Lobbyist or Lobbyist Entity.
Registration Process
• registration and thereafter, all legislative agents and executive agents (but not clients) must complete an in-person or online offered by the State Secretary which explains the requirements of the new legislation.
• Current training required is to read the statute.
Financial Disclosure Financial Disclosure Statements are Semi-Annual
Info Reported by Lobbyists:• Every bill number lobbied for/against during the reporting period.
• Itemized list of: all expenditures including:
•meals gifts
•transportation entertainment
•advertising P.R.
•printing mailing etc
• General Contact Information
Info Reported by Clients:•All money paid to any Lobbyist/ Lobbyist Entity during the reporting period
•Itemized list of all expenditures including
•General Contact Information
Note: All reported information is available to the public on the Secretary of State web page
Late Fees
• New Law includes increases in Late Fees for filing Financial Disclosure Statements
• Current penalty for filing a late statement:
• $250 (less than 10 days later) or
• $500 (more than 10 days late)
• Examples• Fee for 9 days late: $250
• Fee for 25 days late: $500
• Penalty under new law:
• $50 per day for first 20 days• $100 per day thereafter
• Examples• Fee for 9 days late: $450• Fee for 25 days late: $1,500
Proposed FinesPresent Law :
• Violation of lobbying laws (including registration, filing statements gifts to officials, etc) are– Considered misdemeanors– Result in fine of $100 to $5,000– No possibility of jail time
• Secretary Galvin may disqualify a person from acting as a lobbyist temporarily (6 years max)
New Law :
• Criminal Penalty will be raised to– $10,000 fine
– 5 years imprisonment
– Or both
• Secretary of State could suspend or permanently revoke a lobbying license