Records, Forms, and Mystery? Completing LD

Report
The Mechanics of Lobbying Disclosure
Completing LD-1, 2, & 203
JUNE 26, 2008
© 2008 Venable LLP
1
Contact Information
VENABLE TEAM
Jeffrey S. Tenenbaum
[email protected]
t 202.344.8138
f 202.344.8300
Ronald M. Jacobs
[email protected]
t 202.344.8215
f 202.344.8300
www.Venable.com
© 2008 Venable LLP
2
Topics for Today

LD-1 Refresher

Completing the LD-2
– Affiliates
– Foreign Entities
– Termination

Preview of the LD-203
– Information to be collected
– Preparing for the report
© 2008 Venable LLP
3
Completing LD-1
OBTAIN SENATE ID

http://soprweb.senate.gov/

Complete online form

Print form and send to
Secretary:
– Mail
– Email
– Fax

Senate will email ID to
you
© 2008 Venable LLP
4
Completing LD-1
DOWNLOAD SOFTWARE

Install software
http://lobbyingdisclosure.house.gov/software.html
© 2008 Venable LLP
5
Completing LD-1
DOWNLOAD FORM

Download
blank LD-1
http://lobbyingdisclosure.house.gov/register.html
© 2008 Venable LLP
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Completing LD-1
COMPLETE PAGE 1

Enter Senate ID

Name and address
of registrant

Client = Registrant?

Lobbyists
– Time 20%
– Contacts >1
– Disclose covered
positions (Executive
or Legislative
Branch) for past 20
years
• If more than 1,
list lobbyist
multiple times,
with each
position
© 2008 Venable LLP
7
Completing LD-1
COMPLETE PAGE 2

Issue Codes

Specific Issues
– Include bill
numbers

Affiliated
Organizations

Foreign
Organizations
© 2008 Venable LLP
8
Completing LD-1
AFFILITATED ENTITIES

Test for Affiliation:
– Contributes more than $5,000 per quarter toward
lobbying activities
• Dues: percentage allocated for lobbying
• Special assessments for lobbying
• Quarterly versus yearly payments
AND
– Actively participates in lobbying

Disclosure:
– List each entity on form OR
– List web site with members
• May not use web if entity in whole or major part plans,
supervises, or controls; must list on form
• Whole or major part = 20%
© 2008 Venable LLP
9
Completing LD-1
AFFILITATED (CONTINUED)

Examples of Active Participation:
– Serving on a board of an organization
• If the organization is substantially devoted to lobbying
• But not if the organization has multiple purposes and the board only
sets overall budget
– Serving on lobbying oversight committee
– Serving as part of informal lobbying coalition that directs
lobbying strategy

Examples of passive participation:
– Attending an annual meeting
– Providing a list of legislative priorities
– Responding to requests for information from lobbyists

Individuals who serve on committees by virtue of working for
another organization cause the other organization to “actively
participate”
© 2008 Venable LLP
10
Completing LD-1
FOREIGN ENTITIES

Contributes more than $5,000 per quarter toward lobbying
activities
AND ONE OR MORE OF THE FOLLOWING:

Holds at least 20 percent equitable ownership in client or in
an affiliated entity

Directly or indirectly, in whole or in major part, plans,
supervises, controls, directs, finances, or subsidizes client
or affiliated entity
– In whole or major part defined as 20%

Is an affiliate of the client or of an affiliated entity and has a
direct interest in the outcome of the lobbying
– Guidance suggests that final prong imports any foreign entity that
actively participates in lobbying (see prior slide)
© 2008 Venable LLP
11
LD-2
PAGE 1

Add update page if
needed

Contact information –
update if needed

Lobbying income or
expenses:
– Income if lobbying
firm
– Expenses if selfregistrant
• 3 methods:
– LDA
– 501(c)(3)
– Nondeductibility
method of
162(e)
© 2008 Venable LLP
12
LD-2
PAGE 2

Issue Code

Specific Lobbying Issue

Agencies
– House
– Senate
– Executive Branch

Name of Lobbyist
– Include covered
official position for
past 20 years
– May have to repeat
lobbyist on multiple
lines

Foreign entities

One Issue Per Page
–
Click button for additional
pages
© 2008 Venable LLP
13
LD-2
PAGE 3

Client update information

Remove lobbyists
–
Important because of LD-203
obligations

Remove issues

Affiliated Organizations
–
–

Foreign Entities
–

Add or remove
List web site if not previously
listed
Add or remove
Add additional page if more space
is needed
© 2008 Venable LLP
14
LD-203
OVERVIEW

Semiannual disclosure of “political” contributions

One form for each registrant
– Lobbying firm
– Association or company

One form for each registered lobbyist
– Must obtain user-ID from Senate
• Not yet available
– Look to lobbyists listed on LD-1 and LD-2 reports who
have not been terminated
• Important to terminate those who are not lobbyists
• Must report if listed as registered lobbyist for any
portion of semiannual period

Includes certification of Gift Rule compliance
© 2008 Venable LLP
15
LD-203
IDENTIFYING INFORMATION

Name of the person or organization
– If an individual, then disclose employer

Name of all political committees established or controlled
by person or organization
– For organization, connected PAC
– For individual:
• Guidance suggests serving on a PAC board is
sufficient to be considered in control of a PAC (e.g.,
a leadership PAC)
• Guidance suggests being treasurer is sufficient to be
in control of a PAC
© 2008 Venable LLP
16
LD-203
CAMPAIGN CONTRIBUTIONS



All contributions aggregating $200 or more during the semiannual
period given to:
– Federal candidates
– Leadership PACs
– Political parties
Leadership PAC: With respect to a candidate for election to
Federal office or an individual holding Federal office, a political
committee that is directly or indirectly established, financed,
maintained or controlled by the candidate or the individual but
which is not an authorized committee of the candidate or
individual and which is not affiliated with an authorized committee
of the candidates or individual, except such term does not include
a political committee of a political party.
Must disclose contributions by the individual or organization, and
any PAC established or controlled by the individual or organization
– E.g., connected PAC, PAC listed by individual
© 2008 Venable LLP
17
LD-203
CAMPAIGN CONTRIBUTIONS (CONTINUED)

Must report the date and amount of each contribution

Aggregation is during semiannual period and does not
appear to carry over
– E.g., $199 in May does not appear to be aggregated
with $199 in August

All of this information is already disclosed through the FEC
(either by the donor, in the case of a PAC, or the recipient)
– Must still be disclosed on LD-203
© 2008 Venable LLP
18
LD-203
CONTRIBUTIONS TO ORGANIZATIONS

Name, date, recipient, covered official, and amount of contribution or
disbursement for the following:
– To pay the cost of an event to honor or recognize a covered executive
or legislative branch official
– To an entity that is named for a covered legislative branch official,
or to a person or entity in recognition of such official
• E.g., honorarium to charity, payment to endow a chair at a
school
• Does not include covered executive officials
– To an entity established, financed, maintained, or controlled by a
covered legislative or executive branch official or an entity
designated by such official
– To pay the costs of a meeting, retreat, conference, or other similar
event held by, or in the name of, one or more covered legislative
or executive branch officials
© 2008 Venable LLP
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LD-203
CONTRIBUTIONS TO ORGANIZATIONS

Not clear how contributions that fit on multiple lines will be
reported

How broad is the guidance and what impact does it have?

Not clear how related foundation payments will work

Contributions in this section do not have to be reported if
they are otherwise reported under the Federal Election
Campaign Act
– E.g., by a PAC giving the funds or a candidate receiving
the funds
– Thus, do not have to double report
© 2008 Venable LLP
20
LD-203
CONTRIBUTIONS TO ORGANIZATIONS
Examples

In State "A," a group of constituents involved in widget manufacturing decide to honor
Senator "Y" and Representative "T" with the "Widget Manufacturing Legislative
Leaders of 2008" plaques. Registrant "B" is aware that "Y" has checked with the
Senate Select Committee on Ethics regarding her ability to accept the award and
attend the coffee, and "T" has checked with the House Committee on Standards of
Official Conduct. "B" pays caterer "Z"$500 and Hotel "H" $200 to partially fund the
event. "B" would report that it paid $500 to "Z" and $200 to "H" on November 20,
2008 for the purpose of an event to honor or recognize "Y" and "T" with the plaques.

Key Points:
–
–
–
–
Fairly clear case of honoring – plaques
What about attendees of the event, do they have to report payments?
Note that the payments are not to an organization, but to the hotel and caterer
What if this was just a coffee discussion?
© 2008 Venable LLP
21
LD-203
CONTRIBUTIONS TO ORGANIZATIONS
Examples

Senator "Y" and Representative "T" are honorary co-hosts of an event sponsored by
Registrant "R" to promote "Widget Awareness." "R" would disclose the date, amount,
recipient(s) of funds and "Y" and "T" since "Y" and "T" are being honored and or
recognized.

Key Points:
–
–
Is co-hosting really recognizing or honoring?
Isn’t this more likely to be a payment “to pay the costs of a meeting, retreat,
conference, or other similar event held by… one or more covered legislative or
executive branch officials?”
• What happens if it is reported on the wrong line?
© 2008 Venable LLP
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LD-203
CONTRIBUTIONS TO ORGANIZATIONS
Examples

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.

Key Points:
–
–

Is Y really being recognized here?
If so, then what about payments by attendees of the event?
In State "A," there is a large regional conference on "Saving Our River," sponsored by
three 501c(3) organizations. Senator "Y" and Representatives "T" and "R" are invited
to appear as honored guests. Registrant "B" contributes $3,000 to the event, paying
one of the sponsors. "B" would disclose a payment of $3,000 on August 1, 2008
payable to the sponsor with the notation that "Y," "T," and "R" are honored guests.

Key Points:
–
Facts make it such that they are being honored? How do we know?
© 2008 Venable LLP
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LD-203
CONTRIBUTIONS TO ORGANIZATIONS
Examples

Registrant "B" is a large organization with 50 state offices in which its employees are
assigned to handle state and local government affairs issues. A separate local
organization hosts an event that honors primarily local officials, but also includes
Representative "T," as an honoree. "B" pays for its employees' lunches at the
honoring event. Accordingly, "B" would report that it paid the local organization $200
for lunch to honor "T."

Key Points:
–
–
–
–
–
What makes T an honoree?
What if he is just speaking?
What if the event was a 3-day event with one Member speaking on a panel
What if the attendees were staff (still covered officials) and not members
What if these are covered executive branch officials – much harder to know
• What if the official scheduled to attend is a covered official but a noncovered official substitutes as the speaker?
© 2008 Venable LLP
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LD-203
OTHER EXAMPLES

Request for contribution to Iowa relief from Senate staff person

Looking only at email, is this made at the designation of a covered official?
–
Probably
– If this person is on the board, does that make it controlled by a covered
official – board seat is control for purposes of a PAC
© 2008 Venable LLP
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LD-203
OTHER EXAMPLES

A contribution would be
reportable because of the
“honorary” hosts

What if there were no
honorary hosts, but the
board included covered
legislative branch
officials?
© 2008 Venable LLP
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LD-203
OTHER EXAMPLES

Federalist Society 2007 National
Lawyers Convention
–
–
–
3-Day Event
Are registration costs reportable?
Sponsorship?
© 2008 Venable LLP
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LD-203
OTHER EXAMPLES

International Association of Privacy
Professionals

2008 Privacy Summit
–
–
–
–
–
Approximately 96 Speakers
One covered legislative branch
official
• Is this “recognizing?”
Several executive branch officials
• Are they covered?
Is registration reportable?
Sponsorship?
© 2008 Venable LLP
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LD-203
CONTRIBUTIONS TO PRESIDENTIAL ENTITIES

Name of each Presidential Library Foundation to which contributions
aggregating $200 or more in the semiannual period are given, along with
date and amount of contribution

Name of each Presidential Inaugural Committee to which contributions
aggregating $200 or more in the semiannual period are given, along with
the date and amount of the contributions
– Would include tickets purchased from such committees

Must report contributions from the individual, organization, or a controlled
PAC
© 2008 Venable LLP
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LD-203
CERTIFICATION

Has read and is familiar with those provisions of the
Standing Rules of the Senate and the Rules of the
House of Representatives relating to the provision of
gifts and travel

Has not provided, requested, or directed a gift,
including travel, to a Member of Congress or an
officer or employee of either House of Congress with
knowledge that receipt of the gift would violate rule
XXXV of the Standing Rules of the Senate or rule
XXV of the Rules of the House of Representatives.
© 2008 Venable LLP
30
Contact Information
YOUR VENABLE TEAM
Jeffrey S. Tenenbaum
[email protected]
t 202.344.8138
f 202.344.8300
Ronald M. Jacobs
[email protected]
t 202.344.8215
f 202.344.8300
www.Venable.com
© 2008 Venable LLP
31

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