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On January 1,
2007, Pennsylvania’s new Lobbying Disclosure Act becomes
effective. All charities not otherwise excluded, who spend more
than $2,500 per quarter on advocacy, must register as lobbyists
with the Pennsylvania Department of State. Charities will be
required to register as lobbyists, track their advocacy
communications and disclose all costs associated with state
advocacy. Failure to register could result in fines and other
sanctions.
Also view a copy of our
presentation made
on October 31.
House Bill 700 (PN4887)
was signed into law on November 1, 2006. This supersedes Senate
Rule 2 and Governor’s Executive Order. This replaces the prior
lobbyist registration law that was overturned by the State
Supreme Court in 2002.
New law
requires charities to register with the Department of State,
track their communications and expenses, and file reports
disclosing advocacy communications.
·
Covers State
House, Senate, and Executive Branch.
·
Provides a
single place to register and disclose- PA State Department of
State.
·
Eliminates
traditional lines between lobbying and advocacy
·
Requires
public relations professionals to register as lobbyists
·
Charities NOT
Excluded. Instead, Charities advocating for grant funding or on
state budget issues is lobbying.
·
New $2500 per
quarter threshold, ($10,000 per year), but now for all state
advocacy.
·
Registration
begins January 1, 2007
PANO will offer additional advocacy training sessions for
charities complying with the new lobbyist registration and
disclosure law. For additional information on PANO’s advocacy
training sessions contact
David
Ross.
What pages of the Bill?
·
New Text on
page 1, pages 43 – 44, and pages 63 – 93.
·
Old lobby
disclosure law repealed by bracketed text from pages 44 – 63.
·
HB700 (PN4887)
is now Act No 134 of 2006.
Who is a Lobbyist?
LOBBYIST:
Any individual, association, corporation, partnership, business
trust or other entity that engages in lobbying on behalf of a
principal for economic consideration. The term includes an
attorney at law while engaged in lobbying
Lobbying is defined as…
LOBBYING:
An effort to influence state legislative or administrative
action. Includes:
(I) Direct or
Indirect communication
(II) Office
expenses
(III) Gift,
hospitality, transportation or Lodging to state official or
employee to advancing the interest of the lobbyist or principal
Who is exempt from Registering?
[§1306-A pages 77-78]
-
CHARITIES ARE NOT EXEMPT
-
Preparing
testimony, testifying for a governmental committee or
proceeding
-
Press or
media
-
Volunteer- if compensated below the $2500 per quarter
threshold
-
Elected or
appointed official operating in official capacity
-
Employee lobbying less than 20 hours per quarter on behalf of
employer
-
Bona fide
church protecting religious freedom
How do I register?
-
Register
with the Department of State beginning January 1, 2007.
-
Register within 10 days of acting as a lobbyists
-
$100
biennial registration fee
-
All forms
will be made available online
-
Principal /
Organization -files a single registration statement. [(B)
pages 70-71]
-
Organizations must include its number of dues paying members
in the most recently completed calendar year.
[(B)(3) page
71]
-
Individual/
Lobbyist - files a single registration statement,
[(C) pages 71-72]
-
Changes to
registration statement must be made within 14 days of the end
of the year in which the change occurred.
[(D)(2) pages 70-71]
-
Information
to be posted online for public access. Annual report, annual
directory will be published by Department of State.
Is the communication considered lobbying?
·
DIRECT
COMMUNICATION: An effort, written, oral or by any other medium,
made by a lobbyist or principal, directed to a state official or
employee, with the purpose or foreseeable effect to influence
legislative or administrative action. Includes personnel
expenses and office expenses [HB700
(PN4887) page 66]
·
INDIRECT
COMMUNICATION: An effort, whether written, oral or by any other
medium, to encourage others, including the general public, to
take action, the purpose or foreseeable effect of which is to
directly influence legislative action or administrative action
[HB700 (PN4887) pages 67-68]
(1) Includes:
letter-writing campaigns, mailings, telephone banks, print and
electronic media advertising, billboards, publications and
educational campaigns on public issues.
(2) Excludes:
regularly published periodic newsletters primarily designed for
and distributed to members of a bona fide association or
charitable or fraternal nonprofit corporation
(3) Includes:
personnel expenses and office expenses
What is the Threshold for Reporting? [§1306-A(D)
page 76]
·
You must
register and file a quarterly expense report when total expenses
for lobbying activities exceed $2,500 for a registered principal
per calendar quarter. ($10,000 per year, but more likely that
you will reach $2,500 for the quarter).
·
Once you are
registered, if your total expenses are less than $2,500 for that
quarter, then you must file a statement to that effect.
·
Registered
principal has 30 days after the calendar quarter to file the
report. . [§1305-A(A) page
73]
What should I Report?
-
List the
names and contact information of all lobbyists by whom
lobbying is conducted on behalf of the principal, and the
general subject matter or issue being lobbied.
-
Include the
total costs of all lobbying for the period. The total should
include all office expenses, personnel expenses, expenditures
related to gifts, hospitality, transportation and lodging to
state officials or employees, and any other lobbying costs.
-
The Amount
in its entirety among the following categories:
(i)
the costs for GIFTS, HOSPITALITY, transportation
and lodging given to or provided to state officials or employees
or their immediate families.
(ii)
the costs for DIRECT communication.
(iii)
the costs for INDIRECT communication.
(iv)
expenses shall be allocated to one of the three
CATEGORIES listed under this section and shall not be included
in more than one category.
You may use any reasonable methods of estimation and allocation
[§1305-A(2.1) page 74]
(i) GIFTS,
HOSPITALITY, TRANSPORTATION & LODGING:
GIFTS:
Must report all gifts valued over $250 given to legislator,
regulator or staff whether paid or volunteer.
Does NOT
include a commercially reasonable loan made in the ordinary
course of business, or a political contribution otherwise
reportable as required by law.
HOSPITALITY:
Costs for all meals, beverages, recreation and entertainment.
Must report in
aggregate when it exceeds $650 annually
TRANSPORTATION & LODGING:
Costs of Receptions NOT included
Must report contact information for any individual, association,
or business entity that contributes more than 10% of the total
resources received by the principal during the reporting period
[§1305-A(5) page 75]
(ii) DIRECT
COMMUNICATION DISCLOSURE: All costs associated with direct
communications oral written or otherwise.
(iii) INDIRECT
COMMUNICATION DISCLOSURE: Must report expenses for the purpose
of disseminating or initiating a communication, such as a
mailing, telephone bank, print or electronic media
advertisement, billboard, publication or education campaign,
This is GRASSROOTS ADVOCACY.The
communication shall clearly and conspicuously state the name of
the person who made or financed the expenditure for the
communication. [§1305-A pages 76-77]
·
OFFICE
EXPENSE: Costs for the office, equipment and supplies, used to
support advocacy.
·
PERSONNEL
EXPENSE: Amount spent on salaries, other compensation,
benefits, vehicle allowances, bonuses and reimbursable expenses
paid to lobbyists, lobbying staff, research and monitoring
staff, consultants, publications and public relations staff,
technical staff, clerical and administrative support staff and
includes individuals who engage in lobbying but are exempt from
reporting. For a person
who’s lobbying is incidental to regular employment, use a good
faith prorated estimate of the value of the time spent on
lobbying.
[§1303-A page 69]
What are the Penalties?
[§1307-A pages 78-83]
-
Individuals
who fail to register, fail to report spending, or file false
or incomplete statement could face a $2000 fine & be banned
from lobbying for up to five years.
-
Negligent
failure to register or report could result in a fine of $50
per day for every day not registered or not reported.
Penalties for intentional acts or omissions are much more
severe. Could result in Attorney General investigation and
criminal sanctions.
-
Intentional
failure to register and report by individual or knowingly
filing an incomplete or false statement by individual is a
second degree misdemeanor to be handled by the Attorney
General’s office.
-
Organizations that intentionally fail to report spending could
face up to $25,000 in fines and criminal prosecution by the
Attorney General.
Regulations:
The Committee will propose regulations within 180 days of the
bill’s effective date.
Publications:
The committee will publish a manual of guidelines for accounting
and reporting.
Additional
information can be found
here. PANO will
continue to update charities on lobby disclosure laws. For
information on PANOs advocacy training clinics, or information
about the material presented here, contact
David Ross.
PANO’s Public policy page on Lobbying Disclosure
PA Attorney General
PA Department of State
State Ethics Commission
Law:
Lobbying Disclosure Law (Act 134 of 2006)
Regulations:
Working copies of the Regulations
TITLE 51. PUBLIC OFFICERS, PART II. LOBBYING DISCLOSURE
COMMITTEE
Chapter 51:
General Provisions
Chapter 53:
Registration and Termination
Chapter 55:
Reporting
Chapter 57:
Exemption from Registration and Reporting
Chapter 59:
Opinions and Advices of Counsel
Chapter 61:
Compliance Audits
Chapter 63:
Investigations, Hearings and Referrals
Chapter 65:
Prohibition Against Lobbying as a Sanction
Guidance and FAQ’s:
Interim Guidance for Accounting and Reporting Manual
FAQ’s
Forms and Instructions:
Lobbyist Registration Forms
(Paper)
Instructions to the Lobbyist Registration Forms (Paper)
Principal Registration Forms (Paper)
Instructions to the Principal Registration Forms (Paper)
Quarterly Expense Report/Amended Quarterly Expense Report Form
(Paper)
Instructions to the Quarterly Expense Report/Amended
Quarterly Expense Report (Paper)
What You Can Do:
Final Meeting of the PA Lobbying Disclosure Regulations
Committee is scheduled for Thursday, June 28 (9am) in
Harrisburg. Meetings are open to the public and opportunity for
public comment is available. Regulations to interpret the
existing Lobbying Disclosure law are expected at the end of this
month. Learn where the Lobbying Disclosure Regulations are
moving, and what will be expected of your organization. For more
information go to
http://www.attorneygeneral.gov/theoffice.aspx?id=2099.
Comment on the Lobbying Disclosure Draft Regulations.
Pennsylvania’s New Lobbying Disclosure Law is burdensome,
onerous, and discourages charities from engaging in advocacy.
The Regulations are expected to be released for comment at the
end of this month. Working drafts of each Regulation chapter are
posted on the Attorney General’s website at
http://www.attorneygeneral.gov/theoffice.aspx?id=2099.
Voice your concerns about the Regulations before it's too late.
Send your comments directly to the to Lobbying Regulations
Committee via email at
lobbyingdisclosure@attorneygeneral.gov.
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