Federal Lobbying Disclosure Rules

New Federal Lobbying Disclosure Rules

In September 2007, President Bush signed into law the Honest Leadership and Open Government Act of 2007 (S.1). The law contains several important changes for nonprofits that engage in federal lobbying and advocacy, and lobbyists will be required to follow new disclosure rules. (The term ‘‘lobbyist’’ means any individual who is employed or retained by a client for financial or other compensation for services that include more than one lobbying contact, other than an individual whose lobbying activities constitute less than 20 percent of the time engaged in the services provided by such individual to that client over a three month period. When the lobbyist is an employee of an organization, it is the organization that registers as the lobbyist and submits reports.) The federal rules are separate from the rules in the Internal Revenue Code that limit lobbying expenditures.

Beginning in April 2008, federal lobbyists are required to file quarterly lobbying reports electronically (previously, the reporting period was semi-annually). Lobbyists will be able to use the new forms to file 2007 year-end lobbying reports, although current forms will also be accepted until March 15.

The registration threshold (total expenses in connection with lobbying activities) for organizations dropped from $24,500 (semi-annually) to $10,000 (quarterly). The filing process has been streamlined so that one lobbying report form can be filed with the House and Senate simultaneously.

Reporting must now occur 20 days after the end of the quarterly period beginning on the first day of January, April, July and October of each year in which a registrant is registered, and all reports must be filed electronically. Associations or coalitions that receive more than $5,000 a quarter from an organization for “lobbying activities” must disclose that organization’s name if the organization actively participates in the planning, supervision or control of such lobbying activities.

The civil penalty for organizations that knowingly violate federal lobby laws increased to $200,000 from $50,000, and criminal penalties could result for those who willfully violate the regulations. Lobbyists and organizations that employ lobbyists are prohibited from providing gifts (including travel) to members of Congress if the gifts violate the House and Senate Ethics Rules.

Also, all registered lobbyists will now have to submit semi-annual reports on their political contributions.

The new lobbying disclosure forms are available at www.senate.gov/pagelayout/legislative/g_three_sections_with_teasers/lobbyingdisc.htm and the House Office of the Clerk at http://lobbyingdisclosure.house.gov.

This article originally appeared in the January 2008 issue of New York Nonprofits, the monthly publication of the Nonprofit Coordinating Committee of New York, Inc. www.npccny.org