Significant Changes to
Lobbying Law
October 15, 2009
James A.W. Shaw, Esq.
Segal Roitman, LLP
Introduction to Lobbying
Summary of Current Definition
Under 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
“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
“There’s no doubt there’s been a lot of lobbying on the lobbying
bill by the lobbyists’’ -Secretary of State William F. Galvin
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)
New Definition of Lobbying
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 EBoard 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
Lobbying 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.
New Definition of Lobbying
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.
Allowable Incidental Lobbying
Present Law
No Need to Register as
Lobbyist if:
New Law
No Need to Register as
Lobbyist if:
• 6 Month Period
• 50 Hours or Less
• 6 Month Period
• 25 Hours or Less
• Earn Less than $5,000
(pro rata share of salary)
• 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?
-orIs registration only required only if
someone exceeds the incidental threshold
for either or both executive lobbying?
Advisory Opinions
Present Law
New Law
• Secretary of State does
not have this power
• 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 Process
Who Needs to Register:
How:
•Each employee qualified as a lobbyist
•The union as a “Client”
• Electronically (Request User ID
and Password in writing or email
from Sec. of State’s Office)
• or by paper
Filing
Lobbyist Registration
Client Registration
Lobbyist Entity Registration
Penalty fee for late Reporting
filing within 10 days
Penalty fee for late Reporting
filing after 10 days
Fee
Fee
(Paper) (Electronic)
$100
$109
$100
$109
$1,000
$1,045
$250
$265
$500
$520
When:
• Annually
• By December 15 for
upcoming calendar
year
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: Info Reported by Clients:
• Every bill number lobbied for/against
during the reporting period.
• Itemized list of: all expenditures
including:
•All money paid to any Lobbyist/
Lobbyist Entity during the reporting
period
•Itemized list of all expenditures
including
•meals
gifts
•transportation
entertainment
•advertising
P.R.
•General Contact Information
•printing
mailing etc
Note: All reported information is
available to the public on the Secretary
of State web page
• General Contact Information
Late Fees
• New Law includes increases in Late Fees for filing
Financial Disclosure Statements
• Current penalty for filing • Penalty under new law:
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
• $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 Fines
Present Law :
New Law :
• Violation of lobbying laws
• Criminal Penalty will be
raised to
(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)
– $10,000 fine
– 5 years imprisonment
– Or both
• Secretary of State could
suspend or permanently
revoke a lobbying license