2010 NCSL Legislative Summit a Success

Excuse me for stepping into Elizabeth’s column this month. I want to tell you how great this year’s NCSL Legislative Summit was in Louisville, Kentucky.

For the 12th consecutive year, State and Federal Communications, Inc. exhibited at the National Conference of State Legislature’s Annual Legislative Summit. We always find that our attendance at the conference is enriching and productive, even when some days start with a 7:30 a.m. team breakfast meeting and end with the SGAC Late Night event [which, by the way, is never a disappointment]!

However, this year stands apart from the rest in that I was invited to moderate one of the continuing legal education sessions.  Entitled Citizens United v. FEC:  Political Blockbuster?, the panel addressed the ruling in January by the United States Supreme Court that it is unconstitutional to bar corporations and labor unions from making either independent expenditures or electioneering communications.  At NCSL’s 2010 Spring Forum held in Washington, D.C., in April, the group immediately saw the importance of including a session at the annual Legislative Summit to address the impact the Court decision will undoubtedly have on the states.

The panel was comprised of Ken Gross, a partner at Skadden, Arps, Slate, Meagher & Flom in Washington, D.C.; Jason Torchinsky, a partner at Holtzman Vogel PLLC, in Virginia; and Maryland Delegate Jon S. Cardin, who represents Maryland’s 11th District in Northwest Baltimore County. Disclosure requirements in light of the post-Citizens United political landscape were perhaps the most lively debated issue by the panel, and it could not have been more timely given the fact that within the hour after our panel adjourned, Senate Democrats failed to gather the 60 votes needed to overcome an expected filibuster of The DISCLOSE Act, Congress’ legislative response to the ruling in Citizens United.

Until next month, look at your planner at include NCSL’s Legislative Summit, which will be held August 8-11. And, Elizabeth will return to our regular programming in October.

Nola Werren
Client Specialist

Legislation We Are Tracking

At any given time, more than 1,000 legislative bills, which can affect how you do business as a government affairs professional, are being discussed in federal, state, and local jurisdictions. These bills are summarized in the State and Federal Communications’ digital encyclopedias for lobbying laws, political contributions, and procurement lobbying; this information is located on the client portion of the State and Federal Communications website.

Summaries of major bills are also included in monthly e-mail updates sent to all clients. The chart below shows the number of bills we are tracking in regards to lobbying laws, political contributions, and procurement lobbying.

New Georgia Law Notably Changes Lobbying Activity, Reporting

by Zachary H. Hoying, Esq.
Research Associate

Georgia Governor Sonny Perdue signed into law Senate Bill 17 on June 4, 2010. This bill results in significant changes to lobbying activity and reporting in the state. The provisions of Senate Bill 17 take effect January 10, 2011.

Lobbyists will be sure to note the changes made to reporting dates and frequency. Lobbyists are now required to file semi-monthly disclosure reports on the first and fifteenth day of each month the general assembly is in session, current through the end of the preceding report. The first such report is due January 15, 2011. When the general assembly is not in session, lobbyists must file a monthly disclosure report current through the end of the preceding period by the fifth day of each month.

Fees and fines have also been increased. The annual lobbyist registration fee has increased to $300, while each lobbyist identification card now costs $20. Fines for a late report filed while the general assembly is not in session have increased to $275 for filing the report late, $1,000 for filing a report 15 days overdue, and $10,000 for filing a report 45 days overdue.

Further, fines for a late report filed while the general assembly is in session have been implemented to include $275 for filing a report late, $1,000 for filing a report seven days overdue, and $10,000 for filing a report 21 days overdue.

New lobbyist registration requirements are also included in the bill. Individuals convicted of a felony of moral turpitude are not permitted to register as a lobbyist unless 10 or more years have lapsed since the completion of their sentence. Registrants are required to sign a statement verifying no such conviction has occurred, or include a copy of the registrant’s sentence and a statement indicating 10 or more years have passed since the completion of the sentence.

Further, full payment of registration fees is now required of individuals employed by nonprofit organizations, and individuals who lobby at the local level are required to register as lobbyists due to the expanded definition of state agency to include local political subdivisions of the state.

Additionally, the definition of “lobbyist” now includes persons promoting or opposing matters before the state transportation board as well as those spending more than $250 per year to do so. The term “expenditure” now includes payment or reimbursement of associated travel expenses related to attending a meeting or conference so as to permit a public officer to participate in the conference.

Finally, the prohibition on contingent fees for lobbying has been expanded to include the adoption or decision not to adopt any state agency rule or regulation.

Summary of Changes UPDATE
Note Recent Changes to Compliance Regulations

by John Cozine, Esq.
Research Manager 

Government affairs professionals need to be aware of recent changes – and upcoming changes – in compliance laws for several jurisdictions, including:

FEDERAL: The Federal Election Commission (FEC) has issued two advisory opinions approving the creation of two independent campaign committees, which plan to solicit and accept unlimited contributions from individuals, political committees, corporations, labor organizations, and the general public. The committees plan to use funds to make independent expenditures. Citing the recent Supreme Court decision in Citizens United v. Federal Election Commission, as well as a lesser-known decision by the U.S. Court of Appeals for the District of Columbia issued this year called SpeechNow.org v. Federal Election Commission, the FEC concluded corporations, labor organizations, and political committees may make unlimited independent expenditures from their own funds, and individuals may pool unlimited funds in an independent expenditure-only political committee. In the case of the independent committee Commonsense Ten, a registered, non-connected political committee (Advisory Opinion 2010-11), the FEC concluded Commonsense Ten could solicit and accept unlimited contributions from individuals, corporations, labor organizations, and political committees for the purpose of making independent expenditures. In the case of Club for Growth, Inc., a 501(c)(4) corporation, (Advisory Opinion 2010-09), the FEC concluded, on the same basis provided by Citizens United and SpeechNow.org, Club for Growth could establish and administer a committee to solicit and accept unlimited contributions from individuals in the general public, including contributions given for specific independent expenditures. The FEC issued both advisory opinions on a vote of 5 to 1. Commissioner Steven T. Walther dissented in both opinions.

ILLINOIS: Governor Quinn signed Senate Bill 1526 into law. This bill changes several provisions of the lobbying laws. The registration fee is lowered to $300 in response to the previous fee of $1,000 having been enjoined. Under this new law, lobbyists must notify officials in writing of reportable expenditures at the time the expenditures are made. Effective January 1, 2011, lobbyist reports are due on a semi-monthly basis. For 2010, two reports are due, covering the first and second half of the year.

MASSACHUSETTS: The Office of Campaign and Political Finance (OCPF) has issued an emergency rule regarding independent expenditures by political action committees. Emergency Rule 970 C.M.R. 2.17, which states a political action committee only raising funds to make independent expenditures, and then only making independent expenditures, will be regarded as an independent expenditure PAC. Unlike other PACs, independent expenditure PACs may raise funds from individuals without limit, and from corporations and other entities otherwise prohibited from contributing to PACs pursuant to Massachusetts law. Independent expenditure PACs are subject to all other requirements applying to other PACs, including disclosure requirements. An independent expenditure PAC may not directly or indirectly coordinate its campaign activity with any Massachusetts candidate or political committee. If the independent expenditure PAC makes a coordinated expenditure it becomes a PAC subject to all requirements, including limits on contributions applying to other PACs. Finally, the term election includes any preliminary, primary, or special general election. All preliminary reports of independent expenditures must be filed electronically.

MISSOURI: Governor Jay Nixon signed ethics legislation designed to help clean up Missouri's political culture. This ethics overhaul was a top priority for Nixon and legislative leaders this year. Among the major changes, the new law requires elected officials and candidates to report larger campaign donations within 48 hours. It also gives the bipartisan Missouri Ethics Commission the power to begin investigations on its own, without waiting for a complaint. The law also expands reporting requirements for lobbyists who invite groups of state officials to events. Under this new law, campaign disclosure reports must be filed electronically beginning in January, 2011 and the fines for late reports are increased significantly.

WYOMING: Four Wyoming lawmakers are challenging the provisions of the state election code prohibiting political contributions by corporations. The legal petition filed by the lawmakers asks a state district court to review Wyoming’s election law in light of the recent U.S. Supreme Court ruling in Citizens United v. Federal Election Commission. At present, Wyoming law prohibits corporations from making campaign contributions. While Wyoming’s election law hasn’t yet been challenged on grounds raised by Citizens United, it is seen by some lawmakers in Cheyenne as only a matter of time before a lawsuit emerges. The lawmakers hope their petition will preempt any such litigation against the state.

State and Federal Communications Expands Coverage

In a continuing effort to better serve the needs of its clients, State and Federal Communications, Inc. is expanding coverage of laws and regulations for political contributions, lobbying, and procurement lobbying to more municipalities, regional governments, and governmental organizations.

We have added six new jurisdictions for which our online clients will find comprehensive, timely, and accurate information that includes: complete calendar of reporting deadlines; critical statutory citations; extensive directories of contact information; summaries of each state law; detailed reference charts on goods and services contributions; highlights of every statute; copies of all required forms; and much more.

The new jurisdictions are:

• Dayton, Ohio

• Wilmington, Delaware

• Birmingham, Alabama

• Lexington-Fayette Urban County, Kentucky

• Augusta-Richmond County, Georgia

• Columbus, Georgia

State and Federal Communications, Inc. Scrapbook

The Council of Engineering and Scientific Society Executives (CESSE), Pittsburgh, Pennsylvania Nola Werren, client specialist at State and Federal Communications, Inc., spoke on lobbying regulations to non-profit executives from across the country in Pittsburgh on July 15. Her talk, Do you comply?  A Guide to Federal and State Lobbying Regulations, provided the executives an overview of lobbying laws on the federal and state levels, including grassroots lobbying. The presentation, sponsored by the Council of Engineering and Scientific Society Executives, was tailored for lobbying by non-profit organizations. Here she meets with Brad Smith of the American Chemical Society.

At NCSL in Louisville

Elizabeth with Michelle King of the International Trademark Association.	State and Federal Communications Client Specialist Nola Werren, right, with Sano Blocker of Energy Future Holdings.
Elizabeth with Judith Smeltzer of FMC Corporation.	Elizabeth with Joanne Moore, wife of newly elected NCSL President and Massachusetts State Sen. Richard T. Moore, D-Uxbridge.
Elizabeth with, from left: Matt Johnson and Jim Delatte, both of Takeda Pharmaceutical Company, and Chris Badgley.
State and Federal in the Akron Community
Elizabeth Bartz met professional golfer Ben Curtis during an investors meeting for the Greater Akron Chamber. The meeting took place this summer at the Firestone Country Club in Akron.
State and Federal Communications, Inc., fielded one of the teams participating in the 2010 Corporate Derby, sponsored by the All-American Soap Box Derby and United Way of Summit County. Corporate sponsors selected a team of employees who then built and decorated a replica original Soap Box car used in the 1930s. The corporate teams competed at Derby Downs, home of the Soap Box Derby, on July 16 in a double elimination event. State and Federal’s construction team is, from left: Steve Quinn, John Cozine, Sarah Gray (who was also the team’s driver), Ren Koozer, and Nicole Chames. All the employees of State and Federal showed up at the track to cheer on Sarah and the team. Proceeds from the event benefitted United Way.

Plan to say hello at future events where State and Federal Communications will be attending and/or speaking regarding compliance issues.