Last Updated: October 2013
MASSACHUSETTS LOBBYING, REGISTRATION AND REPORTING
Foley Hoag LLP
Tad Heuer and Pat Cerundolo
Table of Contents
1. Federal Registration and Reporting
2. Massachusetts Registration and Reporting
The following is intended to provide a brief overview of the various potential registration and
reporting requirements under federal and Massachusetts laws with respect to the lobbying
activities of most social sector organizations, both nonprofit and for-profit, including public
charities, social welfare organizations and other forms of organization with a social change
mission. The lobbying limitations imposed on tax-exempt organizations by the Internal Revenue
Code are described in the section entitled Nonprofit Taxation and are not reiterated here.
1. Federal Registration and Reporting
Organizations that engage in a specified amount of lobbying activities and lobbying contacts
through personnel that receive financial or other compensation are required to register and
file disclosure reports under the Lobbying Disclosure Act of 1995, as amended (most
recently by the Honest Leadership and Open Government Act of 2007).
Other than religious orders, tax-exempt churches, and their integrated auxiliaries, all social
sector organizations— nonprofit as well as for-profit — that otherwise meet the thresholds
on lobbying contacts and overall expenses (discussed below) must register and file reports.
a. Registration
The federal Lobbying Disclosure Act (the “Act”) is intended to reach “professional
lobbyists”— those paid to lobby on behalf of an employer or client. Thus, if a social
sector organization engages in covered “lobbying contacts” through its own staff that
exceed the statutory thresholds, that organization must register as a lobbying entity, and
must register its individual employee-lobbyists (who are sometimes referred to as “inhouse” lobbyists). If, however, a social sector organization employs lobbyists only from
an outside lobbying firm, the outside lobbying firm must register (and identify its social
sector client) if its lobbying exceeds the statutory thresholds, but the social sector
organization itself is not required to register.
All federal lobbying registrations and reports must be filed electronically at a single
location, http://lobbyingdisclosure.house.gov/index.html, which covers registration for
both the Secretary of the Senate’s Office and the Office of the Clerk of the House.
A social sector organization is required to register its employee-lobbyists if it meets the
following two conditions:
First, the organization must have one or more compensated employees who (a) make
more than one “lobbying contact” on behalf of the organization and (b) spend at least
20% of their total time for the organization on “lobbying activities” over a given
quarterly reporting period. A “lobbying contact” is a written, oral or electronic
communication to a “covered” federal official, (which includes a Member of Congress,
congressional staff, and certain senior executive branch officials), with respect to the
formulation, modification or adoption of a federal law, regulation, rule, program, or
policy, or the administration or execution of a federal program or policy.
“Lobbying activities” include not only “lobbying contacts” but also background
activities, research, and other efforts that support lobbying contacts. Note that there are
also several enumerated exceptions to what constitutes lobbying contacts for purposes of
the Act — for instance, they do not include testifying or submitting written testimony,
and do not include lobbying either legislators or governmental bodies at the state or local
levels. A Section 501(c)(3) organization that has made the “safe harbor” election under
Section 501(h) of the Code has the option of using either the Act’s definition of
“lobbying activities” or the Internal Revenue Code’s definition of “influencing
legislation” to determine the organization’s reporting obligation.
Second, the organization must have spent more than $12,500 in a quarterly reporting
period on “lobbying activities.” The $12,500 includes salaries, overhead, and other
expenses, as well as payments to any outside lobbyists made during the three-month
reporting period. This figure is increased periodically for inflation.
If an organization hires an outside lobbyist or a lobbying firm, then the outside lobbyist
and his/her lobbying firm must register on behalf of the client/organization if he/she (a)
makes more than one lobbying contact with a covered official on behalf of that
client/organization, (b) spends at least 20% of his/her time for that client/organization in a
given quarterly reporting period on lobbying activities, and (c) his/her/its total income
from that client/organization for lobbying exceeds $3,000 in that quarterly reporting
period.
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Lobbyists are required to be registered within 45 days after either (a) being hired by a
client (if the intent is that the lobbyist will make more than one lobbying contact and
meet the 20% threshold), or (b) making a second lobbying contact (if the intent to make a
second contact did not exist at the outset of the engagement) and meeting (or intending to
meet) the 20% threshold. Information required on the registration form, known as the
LD-1 form, includes: identification of the lobbyist(s); the client or employer of the
lobbyist(s); identification of any foreign entity and its contributions over $5,000 (if the
foreign entity owns 20% of the client or controls, plans or supervises its activities); and a
list of the general issue areas on which the registrant expects to lobby.
b. Reports
Registrants under the Lobbying Disclosure Act are required to file both quarterly and
semi-annual reports.
Quarterly reports by the lobbying entity (either the outside lobbying firm or the employer
of in-house lobbyists), also known as LD-2 reports, are to be filed within 20 days after
the end of each calendar quarter. Among other items, these reports must include not only
the issues lobbied upon, but the bill numbers lobbied upon, the names of the lobbyists,
and the Houses of Congress and federal executive branch agencies contacted. Reports
must also include a good faith estimate of either lobbying expenditures (for reports filed
by organizations who employ in-house lobbyists), or income received from clients (for
reports filed by outside lobbyists). Amounts in excess of $5,000 are to be rounded to the
nearest $10,000.
Semi-annual reports by individual lobbyists, also known as LD-203 reports, are due on
January 30 and July 30. The required disclosures in these reports include: the names of all
political committees established or controlled by the lobbyist or registered organization;
disclosures of contributions by each lobbyist of more than $200 to federal candidates or
officeholders, political committees, or leadership PACs; and funds disbursed for events to
honor covered government officials, to entities that are named for or “in recognition” of
such officials and to entities that are controlled or designated by such officials. The name
of each presidential library and inaugural committee to which contributions of at least
$200 were made during the semi-annual period must also be reported. Additionally,
registrants are required to certify that the organization or person filing the report has read
and is familiar with the rules of the House and Senate regarding gifts and travel, and that
they are compliant with these rules.
For more detailed information, the House Clerk maintains a comprehensive Guide to the
Lobbying Disclosure Act at
http://lobbyingdisclosure.house.gov/amended_lda_guide.html.
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c. Penalties
Amendments in 2007 to the Lobbying Disclosure Act increased the civil penalties for
violations of the Act and for failing to remedy a defective filing to up to $200,000. In
addition, the amendments imposed criminal penalties for “knowingly and corruptly”
failing to comply with the Act, with a maximum of five years’ imprisonment.
d. Grassroots Lobbying
The Lobbying Disclosure Act only applies to “direct” lobbying—direct communications
with covered federal officials, and the “lobbying activities” that the person making the
direct communication engages in to prepare for those contacts. “Grassroots” lobbying is
not covered. An organization that engages only in grassroots lobbying will not be
required under the Act to register and report.
e. Congressional Gift and Travel Rules
The Lobbying Disclosure Act imposes civil and criminal penalties on registered lobbyists
(or organizations that employ them) for violations of congressional gift and travel rules.
The Act expressly prohibits any registered lobbyist, any organization that employs them
(and is required to register), and any employee required to be listed as a lobbyist from
making a “gift” or providing “travel” to a Member of Congress or staffer (and other
“covered officials”) if the registrant “has knowledge that the gift or travel may not be
accepted” under House and Senate rules.
The congressional gift and travel rules, and the numerous exceptions to those rules, are
extremely detailed and particularly restrictive with regard to registered lobbyists. No
attempt will be made here to summarize those rules. Any questions concerning the
applicability of the congressional gift and travel rules to specific situations should be
addressed to counsel with specific expertise in this area of law.
f. Federal Funds and Grants
Grant money and funds under federal contracts may not be used by nonprofits and other
organizations for lobbying or for other advocacy or political activities unless authorized
by Congress. These restrictions apply to both direct and grassroots lobbying at the
federal, state and local levels.
g. Resources
Jack Maskell, Lobbying Regulations on Non-Profit Organizations, CRS Report 96-809
(May 7, 2008).
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The House gift and travel rules are available online at
http://ethics.house.gov/sites/ethics.house.gov/files/documents/2008_House_Ethics_Manu
al.pdf
The Senate gift and travel rules are available online at
http://rules.senate.gov/public/index.cfm?p=RuleXXXV
Office of the Clerk, United States House of Representatives, Guide to the Lobbying
Disclosure Act (Effective Jan. 1, 2008; Revised Feb. 15, 2013),
http://lobbyingdisclosure.house.gov/amended_lda_guide.html
William V. Luneburg, Tomas M. Susman, & Rebecca H. Gordon, The Lobbying Manual:
A Complete Guide to Federal Lobbying Law and Practice (4th ed. 2009).
2. Massachusetts Registration and Reporting
The Massachusetts lobbying law is found at Mass. Gen. Laws c. 3, §§ 39-50. The Secretary
of the Commonwealth, as the office charged with administering the law, issues guidance and
advisory opinions regarding the applicability of the law to specific factual scenarios not
expressly addressed by the statute.
a. Lobbyist Registration
Massachusetts law requires two distinct categories of lobbyists to register with the
Secretary of the Commonwealth: Legislative-branch lobbyists (known as “legislative
agents”) and executive-branch lobbyists (known as “executive agents”). Any individual
who meets all three of the following thresholds within a single biannual reporting period
must register as either a legislative or executive lobbyist, respectively:
Legislative Thresholds
1) Makes at least one “lobbying communication” with a government employee;
2) Receives “compensation or reward” for “legislative lobbying,” defined as a) any act to
promote, oppose, influence or attempt to influence legislation, b) any act to promote, oppose or
influence the governor’s approval or veto of legislation, c) any act to influence the introduction,
sponsorship, consideration, action, or non-action on any piece of legislation, or d) “strategizing,
planning and research,” if performed either in connection with or for use in an actual lobbying
communication; and
3) Engages in legislative lobbying for more than 25 hours, or receives $2500 or more in
compensation for legislative lobbying activity.
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Executive Thresholds
1) Makes at least one “lobbying communication” with a government employee;
2) Receives “compensation or reward” for “executive lobbying,” defined as a) any act to
promote, oppose, influence, or attempt to influence the decision of any executive branch officer
or employee regarding either legislation or the adoption, defeat or postponement of a standard,
rate, rule or regulation, b) any direct communication with a covered executive official in attempt
to influence a policy or procurement decision, or c) “strategizing, planning and research,” if
performed either in connection with or for use in an actual lobbying communication (the statute
also contains several limited exceptions to this general definition); and
3) Engages in executive lobbying for more than 25 hours, or receives $2500 or more in
compensation for executive lobbying activity.
The law contains no express exemption from registration for an individual who engages
in volunteer lobbying on behalf of a nonprofit or social service organization. However,
because the statute states that an individual must receive “compensation or reward” to be
classified as a legislative or executive agent, individuals who are engaged solely in
volunteer and/or pro bono lobbying are not required to register.
b. Organization Filings
Organizations that employ lobbyists for hire are known as “lobbying entities.” They
must file annual “lobbying entity” registration statements and pay an annual registration
fee. This fee may be waived for entities representing nonprofit clients, at the Secretary’s
discretion. Within ten days of registration (or of being hired by a new client), lobbying
entities must file a declaration naming their client(s) and the individual lobbyists who
will represent them. Every lobbying entity is also required to file biannual reports, which
must include a detailed list of expenditures incurred, payments made, campaign
contributions made, issues lobbied upon, and compensation received from clients.
Organizations that hire lobbyists, either from lobbying entities or as in-house employees,
are known as “lobbying clients.” They must file annual “client” registration statements
and pay an annual fee. This fee may be waived for nonprofit clients, at the Secretary’s
discretion. Within ten days of hiring either a lobbyist entity or an in-house lobbyist, a
lobbying client must file a declaration to this effect with the Secretary. Every lobbying
client is required to file biannual reports, in January and July, which must include a list of
all lobbying-related salaries paid and expenditures made.
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c. Lobbyist Filings
Individual lobbyists must file annually a list of the clients for whom they will be
lobbying, and pay an annual registration fee. Lobbyists must also file biannual reports,
itemizing their lobbying activities, clients, expenditures, and lobbying-related income.
Prior to registration, and annually thereafter, each lobbyist must complete an online or inperson seminar on the lobbying law offered by the Secretary.
d. Links to Instructions and Forms
Registration is entirely electronic, and the Secretary maintains a comprehensive set of
guidance documents on registration and disclosure report filing at
http://www.sec.state.ma.us/LobbyistWeb/ReadMe/OnlineHelp.aspx.
e. Gift and Lobby Expenditure Restrictions
Massachusetts law bans lobbyists from giving gifts of “any kind or nature” to public
officials and public employees, and prohibits lobbyists from purchasing meals for public
officials and public employees.
Massachusetts law does not restrict lobbying expenditures, but does require that all such
expenditures (including political contributions) be itemized and reported in the biannual
reports of lobbying entities and individual lobbyists.
Massachusetts law restricts the extent of political contributions that can be made by
lobbyists. Lobbyists are limited to donating $200 annually to any given candidate, and
are limited to donating $200 annually to any political committee (other than a “ballot
question” committee). All individual donors (both lobbyists and non-lobbyists) are
subject to aggregate annual contribution limits of $12,500 to all state, county, and local
candidates, and $5,000 to all state political action committees.
f. Penalties
The penalties for violating the registration provisions of the lobbying statute include fines
of up to $10,000 and up to five years imprisonment.
g. Resources
The Secretary’s guidance on registration and disclosure report filing is available at
http://www.sec.state.ma.us/LobbyistWeb/ReadMe/OnlineHelp.aspx. The The
Secretary’s Frequently Asked Questions are available at
http://www.sec.state.ma.us/lob/lobfaq/lobfaq.htm. The Secretary’s database of lobbyists
is available at http://www.sec.state.ma.us/LobbyistPublicSearch/default.aspx.
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Links to the applicable lobbying statutes (Mass. Gen. Laws c. 3, §§ 39-50) are available
at http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleI/Chapter3.
Any person who may be subject to the lobbying statute is entitled by Mass. Gen. Laws c.
3, § 41 to request a confidential advisory opinion from the Secretary as to the
applicability of the statute under specific factual scenarios. Advisory opinions are
available, in redacted form, at http://www.sec.state.ma.us/lob/loblao/loblao.htm.
The Office of Campaign and Political Finance (OCPF) is an independent state agency
that administers the Massachusetts campaign finance law. Its legal resources, including
its Advisory Opinions, Interpretive Bulletins, and Memoranda, are available at
http://ocpf.cloudapp.net/Legal/Index. The OCPF chart of annual campaign contribution
limits is available at http://ocpf.cloudapp.net/Legal/ContributionLimits.
Links to the applicable campaign finance statutes (Mass. Gen. Laws c. 55) are available
at http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleVIII/Chapter55.
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