Thursday, July 10, 2008

New Lobbying Disclosure Rules Cause Confusion

Legal counsel that represents labor and nonprofit organizations that register under the Lobby Disclosure Act (LDA) have written to the Secretary of the Senate and the Clerk of the House regarding the LD-203 Contributions Reporting System and the new LDA guidance. They are concerned that the new guidance "misinterprets" the Honest Leadership and Open Government Act (HLOGA), and are concerned that it will "chill ordinary interaction and association with Members of Congress and impose undue and unreasonable recordkeeping and reporting burdens on registrants and their employed lobbyists."

One item of contention is the Revised Guidance for section 203(a) of HLOGA, which requires lobbyists and groups that employ lobbyists to report all of their contributions to pay the cost of an event that honors a legislative or executive branch official. Example 3 in the new guidance states; "Registrant 'R' sponsors an event. Senator 'Y' is listed on the invitation as an attendee. Representative 'T' is listed on the invitation as a speaker. 'R' would disclose the date, amount, recipient(s) of funds, and 'Y' and 'T' as being recognized."

The letter explains that the "practical implications of Example 3 are far-reaching. Members of Congress and other government officials frequently attend or speak at events that are sponsored or funded, at least in part, by entities that employ lobbyists, including policy forums, seminars, meetings, conferences, conventions and other events that have nothing to do with 'honoring or recognizing' the officials." They ask that Example three is withdrawn from the guidance.

Meanwhile, the Washington Post reports that lawyers are "working overtime to field questions and complaints from lobbying groups eager to fill the thing out correctly by the July 30 deadline. [. . .] Jan W. Baran of Wiley Rein notes that the new law asks lobbyists to report any contributions they make to groups established, financed, maintained or controlled by members of Congress or their staff. Such groups include charities and schools named for sitting lawmakers. But he said there is no specific place on the form to list such expenditures. [. . .] Several lawyers also cite ambiguity in the form's instructions. For instance, it demands that lobbyists disclose payments they make in connection with events at which lawmakers and their aides are honored or recognized."