E-News from State and Federal Communications, Inc.

June 2006

Lobbying is an Integral Part of the American Way

As we come up on the July 4th holiday, I get that patriotic feeling going strong. As I relate this to lobbying, I realize it is our inherent right as a free society to lobby our legislators; in fact the right to petition the government is protected in the Constitution. The lobbying profession is based on getting legislation written, passed, or defeated, as it relates to a client’s interests. This is the American way – it has been going on for many years and we should be proud that we have this right.

Historically, lobbying was handled somewhat differently than today. An article in THE WEEK (February 24, 2006) relates the stories of early lobbying where extra inducements were offered in 1800s… “Gun manufacturer Samuel Colt had his agents slip lawmakers $10,000 in cash, and for good measure passed out fancy revolvers, to win support for a patent extension. In 1833, financier Nicholas Biddle wanted to stop the government from withdrawing huge deposits from his bank. He called upon a powerful senator, Daniel Webster, for help. Webster wrote back that if Biddle wanted his assistance, ‘it may be well to send me the usual retainers.’ Webster delivered an impressive speech on the banker’s behalf, Jeffrey Birnbaum wrote in THE LOBBYISTS, and was promptly paid $10,000. Back then, such payments weren’t considered a crime. They were ‘business as usual’.”

In that same article, THE WEEK now estimates that “42 percent of the members of Congress who have left office since 1998 have gone on to become lobbyists themselves.” And… “In the past five years, the number of lobbyists has doubled to more than 30,000.”

That’s a lot of new faces in the field. Everyone realizes that lobbying is now a serious business. Obviously the downside to this message is that not everyone adheres to the rules of the game, or they may not even know the relevant laws related to lobbying, which change constantly.

That’s why we’ve been successful at State and Federal Communications. We work within the framework of the lobbying legislation now in existence and bring this knowledge to our clients in an expeditious matter through our frequently updated website. We want our clients to be successful in their lobbying efforts, but we also strive to help them do this in a totally compliant and professional manner!

So as we come upon on our national day of independence, remember our right as individuals and institutions to take an active role in the political lobbying process. It is protected by the Constitution!

Elizabeth Z. Bartz
President and CEO
State and Federal Communications, Inc.


Happy Anniversary

Although we have been providing service to our clients for more than 30 years, we are pleased to announce we are celebrating our 13th Anniversary at State and Federal Communications as a privately owned corporation, based in Akron.

We’d like to thank all our employees, suppliers, and most especially, our valued clients and subscribers for your loyal commitment to our services each year.


2006 NCSL Will Be a Blockbuster

At the Annual Meeting & Exhibition of the National Conference of State Legislatures from August 15-18 in Nashville, there will be a host of activities. To begin with, here are key speakers each day at the conference:

Wed. 16th, 8:30 a.m. - Doris Kearns Goodwin, world-renowned historian and author

Thu. 17th, 2:15 p.m. - David Wyss, chief economist at Standard & Poor’s

Thu. 17th, 7:00 a.m. - Christine Todd Whitman, former New Jersey governor and EPA administrator

Fri. 18th, 8:30 a.m. - Peter Hart, a leading public opinion analyst for more than 27 years

Fri. 18th, 8:30 a.m. - Frank Luntz, one of America’s most honored communications professionals

To see the full agenda of the events, seminars, and exhibition schedule, go to http://www.ncsl.org/annualmeeting/

State and Federal Communications will again participate as an exhibitor and we encourage you to visit our booth.  In attendance for us will be Elizabeth Bartz, Scott Stetson, Nola Werren, and Ren Koozer.

Here’s our ‘Lucky Seven List’ for what's hot at this year’s NCSL. Starting with…

#7 ATTEND Dollywood – No, its not Hollywood with thousands of stars. This is Dollywood, the unique entertainment at Dolly Parton's Smoky Mountain world. There are more than 40 live performances each day and 30 rides and attractions for kids of all ages, including the Mountain Sidewinder, voted the top non-roller coaster thrill ride in America.

#6 TASTE some ‘Jack’ – Take the NCSL-sponsored tour of the Jack Daniel's Distillery in Lynchburg, about 70 miles south of Nashville. It's the only place this sour mash whiskey is made. Sampling is optional.

#5 ENJOY the Nashville cuisine – There’s plenty of great restaurants. If you are entertaining legislators, make sure you know and document who is at your dinner table. Legislators from Iowa, Massachusetts and Wisconsin (to name a few) are prohibited to accept your invitation.

#4 HONOR The King – The legacy lives on at Graceland, the home of Elvis Presley. It’s a bit of a drive from Nashville, but you should know this is the 2nd most visited house in the United States behind the White House and you can’t even get in there any more. As a bonus, it’s Elvis Week then, which is a major event in Memphis. We hear that President Bush and Mrs. Bush will accompany Prime Minister Junichiro Koizumi of Japan to Memphis on June 30 to visit Graceland. So why not you too?

#3 MINGLE Around – Get to know SGAC (State Government Affairs Council) and attend the group’s fantastic Late Night Event at the Red Iguana on Tuesday, August 15, 9-12pm. The event is open to all SGAC members. You’ll enjoy it. In the past these late night events have drawn a standing room only crowd.

#2 SEE AND HEAR LeAnn – Country superstar LeAnn Rimes will perform in a private concert for NCSL attendees, with an evening of Southern cuisine at the Tennessee Legislative Plaza, Thursday, August 17 from 6:30-9:30 p.m. A must-do.

#1 MEET US - the State and Federal Communications team at the conference exhibit Booth 612 and see us wearing our new button for 2006!


Changes in Executive Branch Lobbying

IDAHO

On March 22, 2006, Governor Kempthorne signed House Bill 707 requiring registration and reporting for executive branch lobbying activity effective July 1, 2006.  Lobbyists currently registered to lobby the legislative branch will have to amend their registrations if they will engage in executive branch lobbying activity.  Registration will be with the secretary of state.  Registration may be for either branch individually, or both branches.

House Bill 707 modifies the definition of lobbying to include attempts to influence an executive branch official regarding the amendment, adoption, or rejection of any rule, ratemaking, procurement, contract bid, financial services agreement, or bond issue.

Lobbyists registered for executive branch activity only will be required to file semi-annual reports in January and June of each year.  A lobbyist registered for both legislative and executive branch lobbying will file monthly reports inclusive of activity for both branches while the legislature is in session, and then an annual cumulative report.

Electronic registration and reporting will not be available.


NEW HAMPSHIRE

With the passage of Senate Bill 206 (Chapter 21 of the Laws of 2006, effective June 2, 2006), lobbyists are now required to file monthly reports for each client for whom there are reportable transactions from the prior month. The reports must also include the aggregate amount of fees received during the calendar year to the end of the reporting month. The reports must be filed with the secretary of state's office by the second Friday of each month.

Although monthly reporting was to begin in June, the New Hampshire secretary of state has determined that due to the possible passage of HB 1761, which would amend reporting requirements, the first monthly report will not be due until July 14, 2006.

New Hampshire secretary of state's office has indicated the July 14, 2006 statement of aggregate fees received year-to-date in calendar year 2006 will provide disclosure of fees received between April 1, 2006 and June 30, 2006. Therefore, there will be no gap in reporting. The year-to-date aggregate amount reported in July, less the amount of fees that were reported in the April 2006 report, will equal the amount received between April 1, 2006 and June 30, 2006.

If a lobbyist has completed all lobbying activities for a particular client for the 2006 legislative session, the lobbyist may withdraw his/her registration with the secretary of state's office by writing a letter requesting such withdrawal. Lobbyists who choose to withdraw in this manner will not be required to file the statement of fees and expenditures that are now required under SB 206. However, these lobbyists will still be required to file the report of receipts and expenditures that is due on August 15, 2006 for the reporting period April 2, 2006 through June 2, 2006.

Lobbyists currently registered will not need to complete a new registration form. The current registration is legally valid and will not expire until December 1, 2006. New lobbyists may use the forms that are currently available at the secretary of state's office until such time as the new forms can be drafted.


How to Determine Your Pro-Rata Share of Salary

Many states require you to disclose your pro-rata share of salary attributable to lobbying. We have heard various ways of how that is completed and we want to share with you our formula for providing an accurate accounting of your activities.

One of the ways we have heard people arrive at the calculation is to take the salary and divide it into the number of states in the region. That's a good way to start, but we want to warn you that you could be over-reporting compensation in that state because not all of your time is attributable to lobbying.

Try this way of determining your pro-rata share of salary. The product of your multiplication results in your hourly rate. Once you have that you can easily determine your pro-rata share of salary by multiplying your hourly rate and the number of hours you lobbied in that particular state. This is a tried and true method used at State and Federal Communications, Inc. It has passed audits in a number of states!

Determine your hourly rate by dividing your annual salary by 2,080.

For example, if your annual salary is $100,000, the calculation is as follows:

2,080 is the number of hours in a work year.
(Based on 40 hours a week, 52 weeks a year.)

$100,000 ÷ 2,080 = $48.08
(This is your hourly rate.)

Take the number of hours you spent lobbying in that one state and multiply it by your hourly rate.

You spent 30 hours last month in your state, so you multiply 30 x $48.08

You have your pro-rata share of salary.

Your pro-rata share of salary is $1,442.40.

 


Meet John Cozine, Esq., Research Manager

John oversees a team of State Researchers who update the series of Executive Source Guides from State and Federal Communications.

When asked why the company’s clients should check the website each week, he comments, “The State and Federal Communications website is always evolving. We continually update and change newly mandated legislation, including posting immediate changes when needed that may affect and impact our clients on a timely basis.


See Us in Person

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

NCSL
National Conference

August 15 - 18, 2006
Nashville, Tennessee
www.ncsl.org


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