Transcript Minnesota Assn. Meeting

SWEARING COMPLIANCE UNDER THE
NEW FEDERAL LOBBYING LAW:
ARE YOU READY?
Larry Norton and Jim Kahl
Womble Carlyle Sandridge & Rice PLLC
Washington, D.C.
AGENDA
I. NEW LOBBYING LAW

Overview
II. THE NEW REPORT

Overview

Who Files

How to File
III. COMPLETING THE LD-203
IV. QUESTIONS
HONEST LEADERSHIP & OPEN
GOVERNMENT ACT
OF 2007
• Gift rules apply to
private sector
• Gift ban for registrants
and individual lobbyists
• Quarterly reports
• “Sarbanes-Oxley type”
certification
COMPLIANCE WITH THE
GIFT BAN
• Old Rule: $50/gift and $100/year
• New Rule: No gifts from lobbyists,
and organizations that employ or
retain them
• Exceptions are available; must
meet one of them
WHAT IS A GIFT?
• Anything of value
• Meals, Hospitality, Entertainment
• Tickets to events, galas, games,
dinners
• Valuable commemorative items, such
as expensive pens; designer desk
accessories; wine/spirits; clothing
• Transportation and lodging
TOUGHER SANCTIONS
• Raised the stakes
• Random Audits
• Increased civil
penalties
• Felony – intentional
violations
FORMAL SANCTIONS MAY
NOT BE THE WORST THING
THAT CAN HAPPEN
• Information is in the public domain
• Will be scrutinized by press,
competitors, and watchdog groups
• Damage to reputation
RISK MANAGEMENT
 Compliance
Program
 Involve relevant
personnel
 Encourage
questions
THE NEW FORM:
LD-203 OVERVIEW
• Registrants and lobbyist must file
separate reports
• Disclose political contributions and other
expenses
• Certify (registrant and lobbyist):
“read and familiar with” gift rules
“have not provided” gifts that violate
House & Senate rules
FILING THE FORM
• Electronic filing required
• Filing deadlines
 July 30: covers Jan 1 to June 30
 January 30: covers July 1 to Dec 31
HOW TO FILE:
REGISTRANTS
• Access system using
(https://ld.congress.gov:4433/LC/) &
enter Senate user ID and password
• System is interactive – create new
filings, open saved filings, and
amend a previous filing
• One click - form is filed with House
& Senate
HOW TO FILE:
LOBBYISTS
• The registrant (i.e., employer) must
verify lobbyist’s information –
correct e-mail address
• E-mail is automatically sent to
individual lobbyists
• Lobbyist verifies information &
creates own account password
BUT I DIDN’T LOBBY THIS
YEAR . . .
• If you are “active” in the reporting
period, you must file LD-203
• If no longer employed as a lobbyist,
must file for any reporting period
for which you were active
DIDN’T GET AN E-MAIL?
• Current or former employer did not
activate your account
• Contact and request activation
• Don’t want to contact old boss?
Call the House Legislative
Resource Center - 202-226-5200
CAUTION!
• Registrant can add a new lobbyist
on LD-203
• Lobbyist can update own LD-203
account to reflect new employer
• But -- neither change is effective
until an LD-1 or LD-2, as
appropriate, is filed by registrant
NEW OBLIGATIONS
NEW INFORMATION
• Registrants and lobbyists disclose
contributions and payments in
separate filings
• New information: disclosure not
previously required
DISCLOSURE OF POLITICAL
CONTRIBUTIONS
Political contributions $200 + to:
• Federal candidates and officeholders
• Political party committees
• Leadership PACs
• Presidential libraries
• Presidential inaugural committees
DISCLOSURE OF NONPOLITICAL COSTS AND
DONATIONS
• Event to honor or recognize covered
leg/exec official
• Entity named for covered leg official
• Entity established, financed, maintained
or controlled by covered leg/exec official
• Entity designated by leg/exec official
• Meetings held by or in the name of a
covered leg/exec official
WHO ARE COVERED
LEGISLATIVE OFFICIALS?
• Members of Congress
• Any employee of Member of
Congress, committee of House or
Senate, working group or caucus
providing assistance to members
• Elected officers
• Position described in Ethics in
Government Act of 1978
WHO ARE COVERED
EXECUTIVE OFFICIALS?
• President and Vice-President
• Officer/Employee in Executive
Office of the President
• Executive Schedule I-V
• Uniformed Services above O-7
• Confidential or policy-making
position (Schedule C)
FECA CONTRIBUTIONS
• Contributions ≥ $200 to federal
candidate or officeholder,
leadership PAC, or political party
committee
• Date and amount
• PAC contributions included
• Presidential inaugural committees
TIPS FOR FECA
CONTRIBUTIONS
• Contributions
equal to $200 or
greater (disclose
to FEC only if
over $200)
• Lobbyists who
serve as PAC
treasurers or on
PAC boards
TIP – VERY BROAD READING OF
“HONOR OR RECOGNIZE”
PROVISION
• Costs of event
where Member of
Congress is speaker
or panelist
• Cost of tickets for
event where
Member is identified
on invitation, even
as honorary co-host
• Local officials may
be there, too
WHAT CATEGORY FITS?
• Ethics committees say must report
honoree and amount of funds paid
for a meeting, retreat, conference,
or other similar event held by, or in
name of, 1 or more covered
leg/exec branch officials
• Is this a “meeting expense” or an
“honorary expense?”
IS SOMETHING MISSING?
• Payments to entities designated by
or established, financed,
maintained or controlled by
covered persons
• Not clear which category fits
THE “READ AND IS
FAMILIAR” REQUIREMENT
• Lobbyists
• Non-Lobbyists
• What kind of
training?
• In what form?
• Making updates
available
• In-house or with
outside support
WHO WILL CERTIFY FOR
THE ORGANIZATION?
• Certification
written entirely in
the first person
• Certifying on
behalf of which
employees?
• No place on
form to sign and
take
responsibility
GOOD RECORDKEEPING IS
ESSENTIAL
• Must disclose even nominal
donations and event costs
• Covers payments to all sources,
including charities, schools,
hotels, printers, other vendors
• For each contribution, must
report date, recipient, and
amount
• Pre-approval system
COMPREHENSIVE
COMPLIANCE PROGRAM
• One size does not fit all!
• System to track legal
developments
• Regular training & materials
updated
CONTACT INFO
Larry Norton: (202) 857-4429
[email protected]
Jim Kahl: (202) 857-4417
[email protected]
Womble Carlyle Sandridge & Rice, PLLC
Washington, D.C.