Archive for February, 2011

Boeing “clear winner” of defense contract

Monday, February 28th, 2011 by Vbhotla

Deputy Defense Secretary William Lynn said that “Boeing was the clear winner” in a competition for a the right to build refueling tankers for the U.S. Air Force.  Boeing, which overspent EADS by over $8 million in lobbying dollars since 2008 (including $5 million spent since January), beat out top competitor EADS for the highly coveted contract in the culmination of a nearly-decade-long competition.

Despite EADS’ ally in Northrop Grumman, Boeing’s alliance with the International Machinists and Aerospace Workers Association was the differencemaker in this process.  Boeing plans to build its tankers in Washington state, which relies heavily on union labor, contrasted with EADS’ plans to build in a state that does not rely on union labor — Alabama.

Last week, Senators Jerry Moran (R-Kan.), Pat Roberts (R-Kan.), Patty Murray (D-Wash.), and Maria Cantwell (D-Wash.) held a joint press conference to urge President Obama to consider the dramatic subsidies European-owned EADS receives from the French government, which enable the company to Pokies beat Boeing’s bottom line.  Gulf Coast Governors drafted a letter to the president on EADS’ behalf asking him to ensure “parochial interests” did not impact the decision.

Rep. Norm Dicks (D-Wash.), Ranking Member on the Appropriations Committee, said Thursday was “one of the happiest days of my professional life,” lauding his efforts to change the Air Force’s price evaluation process as a possible contributor to Boeing’s success.  Boeing estimates the contract will allow the company to support 50,000 jobs in the state.

Boeing’s planes will burn 24% less fuel than those EADS would have made, a difference in long-term cost that was discovered after evaluating the 40-year, versus 25-year cost, a measure proposed by Dicks.

Rep. Jo Bonner (R-Ala.) said, “This competition has been challenged before, and it’s not unlikely it will be challenged again.  It will ultimately be up to EADS to determine whether they will protest this decision, and I will fully support whatever decision they make.”

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DeLay establishes legal defense fund

Monday, February 28th, 2011 by Vbhotla

Tom DeLay, the former House Majority Leader convicted on conspiracy to launder money in state elections, and who has often been listen in connection with the Jack Abramoff trials, has established a new legal defense fund to appeal a January conviction.

According to the, in fact, he can now “accept contributions of any type or amount.”

In addition to catching heat for receiving contributions to his defense fund by lobbyists, several Congressmen, including fellow Texan Rep. Lamar Smith (R-Tx.) were also noted as having contributed to DeLay’s first legal defense fund, in what some considered a breach of House Ethics rules.

Craig Richardson, a key fundraiser for DeLay while he was still in public office, has been listed one of two trustees of the fund.  DeLay was sentenced to three years in prison, which he evaded by posting $10,000 bond, and ten years of community service in lieu of an additional five years on a related charge.

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Google, DOJ square off on acquisition

Monday, February 28th, 2011 by Vbhotla

The Department of Justice has some concerns about a pending merger between internet giant Google and ITA, a flight information software company.  Google announced the acquisition July 1, 2010.  Initial reactions around the business community were that the deal merely increased Google’s business; it did not threaten the existence of other travel sites. But members of FairSearch.org, an organization comprised of top internet travel sites, including Expedia, Hotwire, TripAdvisor, Kayak, fear that Google may try to leverage its dominance in the internet search industry to promote its product, thereby damaging their own.

The Department of Justice is threatening to block the merger, and the parties are in negotiations.  Insiders are unable to predict whether a deal is within days or whether it will fall apart completely.  Google spent nearly $12 million on in-house lobbying around anti-trust, privacy, and competition among other issues between 2008-2010.  The company spent an additional $5.4 million on retained firms over the same time period.

Though Google contends that it does not intend to set prices or sell tickets, and that its acquisition will make airfare searches easier and drive “more potential customers to airlines’ and online travel agencies’ websites,” Bing, which is in direct competition with Google, relies on the software for its travel site as well.

Sen. Herb Kohl (D-Wis.) wrote to Attorney General Christine A. Varney last year from his position on the Antitrust subcommittee to outline concerns over competition and antitrust issues raised by the acquisition, and saying it “warrants a careful review.”  Consumer Reports said it is “concerned that the Google-ITA acquisition has the potential to limit consumer choice in the already complex marketplace of online travel, particularly after such a deal were to be finalized.”



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Industry Moves and Changes

Monday, February 28th, 2011 by Vbhotla
Cari Guittard, former executive director of Business for Diplomatic Action, is the new vice president of global affairs for the Howard Consulting Group.

Former Rep. Allen Boyd (D-Fla.) has been named senior adviser at Twenty-First Century Group.

Andrew Halataei, government affairs consultant and former Legislative Director for Congressman Randy Forbes (R-VA), has joined the Information Online Pokies Technology Industry Council (ITI) as director of government relations.

Stacey L. Douglas has been selected to assume the position of Executive Director at the Used Textbook Association (UTA) Board of Directors, effective March 1.

New Mexico Democrat and one-time presidential candidate Bill Richardson has  been named as chairman of Global Political Strategies by APCO Worldwide.

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NFL Fight Presses On

Friday, February 25th, 2011 by Vbhotla

In addition to the AFL-CIO, several Indiana state Delegates have gotten involved in the labor fight between the league and its players union.  The AP reports that both of Indiana’s senators and all nine of its representatives have penned a letter to both Roger Goddell and players union president DeMaurice Smith indicating their concern that “a failure to complete a new agreement could lead to a work stoppage affecting the upcoming 2011 NFL season and Super Bowl XLVI in Indianapolis,” which, according to a Ball State University study, could deprive the state of an estimated $365 million in revenue.

Representatives from the interest of tax payers, NFL fans and the impact a lockout could have overall.

While Congress has steered clear of intervening thus far, some argue that the millions in subsidies the NFL receives give Congress good reason to get involved.  But the league expends an extraordinary amount of effort to ensure its interests are recognized on the Hill, spending $2.5 million last cycle alone.  And a lot of credit is due to Jeff Miller, the league’s chief lobbyist, for his success in this endeavor.  Miller has said that he will not seek congressional interference on a collective bargaining agreement, believing that the parties should be more than capable of reaching a suitable agreement among themselves.

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Weekly news round-up

Friday, February 25th, 2011 by Vbhotla

They’re at it again: Politico reports yet another favorite off-Campus meeting place White House officials usher their lobbyist guests.  Yesterday’s report suggested that administration officials, who have often been criticized for holding meetings with lobbyists at a local Caribou Coffee to circumvent documenting the meetings, are now holding meetings at local Jackson Place Townhouses, where the White House houses its conference center.  Sentiments on the secret meetings vary.  Some welcome the outreach, despite the secrecy, and others decry the administration’s hypocrisy.

The Obama Effect: Former White House chief of staff Rahm Emanuel coasted easily to victory in the Chicago mayoral race with 55% of the vote, despite earlier controversy over his eligibility.  The president’s approval rating is obviously favorable in his hometown.

Budget Stalemate: Speaker Boehner (R-Ohio) has said he will not issue another continuing budget resolution if the chambers fail to reach an agreement on spending for FY2011 before the current resolution expires March 4 unless the resolution includes significant cuts.  Some are predicting that with the Senate’s legislative calendar, an agreement within the time constraints is unlikely and a government shut down is all but inevitable.  The New York Times reports that aides to Sen. Mitch McConnell (R-Ky.) accuse Democratic counterparts of “rooting for that outcome.”

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Lobbying through Twitter

Thursday, February 24th, 2011 by Vbhotla

When one thinks of “lobbying,” power suits, briefcases, maybe a “K St.” sign, maybe even scowling politicians and news headlines come to mind.  But it is probably safe to assume that the term does not stir up images of little blue birdies.  Yet, increasingly, Twitter is taking center stage in lobbying efforts around the globe.

Twitter was largely credited for the favorable opinion Egyptians received during their revolt for freedom a few weeks ago; had it not been for the American public’s ability to watch the events unfold through the eyes of the citizens on Twitter, the U.S. could have easily (and probably would have) sided with the Egyptian government, as Egypt has traditionally been a key U.S. ally.

In New York, Underheard in New York is trying to bring the plight of the homeless to the forefront of people’s minds in the same way as the Egyptian people.  According to their website, the self-described “Millenials” believe the best way “to help the homeless population is by helping them be better heard and understood.”  To achieve this, the team of young people has armed four homeless men in the city with prepaid cell phones and Twitter accounts, encouraging them to document their struggles.

One, Danny, Tweeting as @putodanny, hopes to be reunited with his daughter through the site.  Albert (@albert814) was laid off as a welder three years ago due to declining eyesight.  He hopes to earn culinary certification and become a chef.  His co0king test is today.  Both Carlos (@jesse550) and Derrick (@awitness2011) tweet often about visiting the library to post resumes.  Carlos has 26 years of experience as a paralegal and is hoping to start his own credit collection agency.  Derrick wants to own a Christian entertainment facility.

They have built Twitter followings of over 3,000 each (except Carlos, who has yet to tweet).  And not only are their stories being told, people are reaching out to help.  Already, Danny has received an offer from a professional writer to help him pen a book.

It is impossible to deny the impact social media sites like Twitter is having on day to day activities, the influence on perspectives.  Congressmen, regulatory agencies, the president are all engaging with followers on Twitter.  If you have yet to embrace social media as an effective avenue to get your message heard, you are missing a world of opportunity.

For more information on social media as an effective Grassroots, Grasstops, and Coalition building platform, join us for our March 28 Lobbying Certificate Program.

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Swayze’s widow lobbies for cancer research

Wednesday, February 23rd, 2011 by Vbhotla

Lisa Niemi Swayze, widow of “Dirty Dancing” star Patrick Swayze, took to the Hill last week to lobby for the Pancreatic Cancer Research and Education Act,  introduced last Wednesday in the House of Representatives and the Senate.

Lisa Niemi Swayze, wife of actor Patrick Swayze, speaks about pancreatic cancer research in front of a projected image of her and her husband, Feb. 16, 2011, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)

The bill calls for the National Cancer Institute to develop a strategic plan every five years to conduct and support research and awareness promotion under the supervision of the Department of Health and Human Services.  It would “amend the Public Health Service Act to provide for a Pancreatic Cancer Initiative,” according to the bill’s text.  It also makes provisions for five year research grants, with aniston pokies $5,000,000 in authorized grant appropriations for fiscal year 2012, and an additional $20,000,000 authorized for centers of excellence,  (in the Senate version).

Rep. Anna Eshoo (D-Calif.) said in a statement, “Despite the terrifying statistics, it’s still one of the most overlooked types of cancer and research continues to be underfunded while the death toll climbs.”  The five year survival rate for those diagnosed with pancreatic cancer is just 6%.

Others active on the issue include the American Cancer Society and its various regional subsidiaries, Susan G. Komen for the Cure, the Pancreatic Cancer Action Network, and various universities and cancer societies.

The Pancreatic Cancer Action Network has a lobby day scheduled for June 13-14, 2011 and is urging those impacted by the disease to plan to attend.

Patrick Swayze died in 2009, 22 months after being diagnosed with the disease.

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Music, movie, drug industries unite on copyright issues

Monday, February 14th, 2011 by Vbhotla
If the Chamber of Commerce gets its way, Congress will soon be passing a law to mitigate copyright infringement online.  The Chamber is seeking to obliterate websites, such as the already-defunct Limewire, which allow music and movie sharing, or “pirating,” for free, claiming such sites are in serious violation of intellectual property regulations.

Drug companies, record labels and movie studios all see depleted sales thanks to online imitators and “sharers,” which enable consumers to bypass the original distributors for free or significantly discounted prices.  The Chamber is urging President Obama to push for IP protection as well, by enacting his IP enforcement strategy and constructing trade agreements in accordance with IP protections.   Opponents argue that such legislation places unfair limits on free speech.

In other copyright news, cell phone companies, which had banded together to combat copyright charges pending against them, won the battle against a company that sought royalties for features such as camera phones that virtually every cell phone employs, but for which the plaintiffs asserted they were granted a patent which extended into the next decade.

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Abramoff associate sentenced

Monday, February 14th, 2011 by Vbhotla

Michael Scanlon is the latest Abramoff associate sentenced for his role in the corruption scheme.  A district judge sentenced the former House aide to 20 months in federal prison.  Scanlon pleaded guilty in 2005 to conspiracy to bribe public officials and honest-services fraud, which his attorney referred to as “extraordinary cooperation,” when he requested a sentence that did not include jail time.  The district attorney requested two years imprisonment, despite Scanlon’s role in aiding the Department of Justice in 20 Abramoff-related investigations. Scanlon said that he is “so sorry, so very remorseful,” at the sentencing.

Fraser Verruscio, another official on the hot seat because of his connection to Abramoff, was also convicted of one count of conspiring to accept an illegal gratuity, one count of making a false statement in failing to report gifts from lobbyists.  His sentencing is scheduled for May 6, and he could be facing up to five years in prison and $250,000 in fines for each charge.

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Approaching Potential Coalition Partners

Wednesday, February 9th, 2011 by Brittany

Approaching coalition partners is often as easy as simply asking the leader of a group to join your effort.  Answers to the following questions will help the advocate leader in developing a plan:

  • Who are the easiest groups to get?  If the goal is to build a critical mass early, contact the most gettable groups first.
  • Are there groups that will help you leverage participation by other groups?  If so, consider expending some effort to get these “leading” groups.  Once they have agreed to join, others will come much easier.
  • Are there groups that might serve to limit participation by others?  If this is the case, carefully consider whether they should be approached at all.  Sometimes coalitions are not successful because the core set of groups leaves a less than stellar impression.  Conversely, groups that might be considered less than ideal may need to be included for political and/or policy reasons.  In these cases, it may make sense to try to get them on board later rather than sooner.
  • Who is the best person to approach the potential coalition partner?   A member of the organization’s advocate network who serves as a board member, donor or friend of one of the groups that the organization plans to approach may be ideally suited to make the initial contact.  This practice serves two purposes: 1) it engages a member of the advocate network in the policy work of the organization; and, 2) it enhances the credibility of your message with the receiving group.
  • What materials will be available to the groups being asked to join the coalition?  At a minimum, a one pager outlining the mission, goals and basic strategies should be provided.  The one pager should also include details on what might be expected of coalition partners.

For more information or to purchase the Advocacy Handbook click here.

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It wouldn’t be football if there weren’t politics!

Friday, February 4th, 2011 by Vbhotla

It wouldn’t be Super Bowl Sunday if there weren’t behind-the-scenes politics involved.  From the president’s beer to no-fly zones, here are some fun facts about some politics behind the Super Bowl:

  • Green Bay’s Hinterland Brewery, which is brewing the official White House Super Bowl party beer, is represented by the Brewers Association before Congress.  The association works on behalf of small breweries to inform Congressmen about not only the brewing process, but the economic plight of the companies, most of which are small businesses.  President Obama’s selection of a Pack-land brewery underscores his jobs message, which has taken a depleted focus in light of the crisis in Egypt.  It could not hurt his standing in Wisconsin, which  is a projected 2011 swing state, either.
  • No love lost: The president reassures Steelers Nation that he’s “got some love for the Steelers.”  Pennsylvania, another key swing state in the coming election, has been a tough state for Obama to win over in the past, thanks to his sometimes-aristocratic language.  The president, who has received an honorary jersey from both teams (one signed Charles Woodson Packers jersey with “see you at the White House” scribbled across the number 21, and a personalized OBAMA Steelers jersey) has said he will remain neutral since his beloved Bears are not competing.
  • 2012 watch:  Rep. John Conyers (D-Mich.) is hosting a $4,800 (individuals) to $5,000 (PACs) per ticket fundraiser/Super Bowl party in Dallas.  Rep. Sanford Bishop (D-Ga.) is also hosting a Super Bowl party/fundraiser in his home state, but at a mere $1,500 for PACs and $750 for individuals, the price tag is nowhere near that of his Michigan counterpart’s event.
  • Texas native Sen. John Cornyn (R) will host guests in the NRSC’s luxury suite at Cowboy Stadium as a fundraiser for the committee.   It is speculated that Jerry Jones, Cowboys owner and prominent NRSC supporter (Jones donated 25,000 to the committee in 2007), may make an appearance.  Cornyn has said he is rooting for the Packers.


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    Superbowl Sunday Compliance

    Thursday, February 3rd, 2011 by Vbhotla

    America’s Big Game happens Sunday, and some (including Sports Illustrated’s Peter King) speculate this could be the last we see for a year or so.

    Lavish SuperBowl  parties are going to be in full force across the nation.  Many will flock to Dallas to see how they may get in on the action.  People will lose their minds and forget all of the rules.  However, lobbying watchdogs will not forget. And here at LobbyBlog, neither will we.  So, to keep you in compliance this Superbowl weekend, here are some things to remember:

    • You may NOT buy any staffer/member/executive branch appointee a ticket to the SuperBowl.  With tickets quickly approaching $5,000 each, unless the member/staffer/appointee pays for his/her own ticket, this amount far surpasses the acceptable gift limit for 100 (gifts (over 50 years!)!  (Remember, the rule is $50 per occurrence, $100 total per year for gifts, but NO GIFTS FROM LOBBYISTS.)

    –> This does not mean it is okay to invite the staffer to pay $25 for a standing-room-only ticket, and grant him                  full access to your company’s corporate suite, like the Redskins attempted to do a few years back.  It is a bad idea.  Don’t try it.  The fallout will be highly publicized and you WILL go to jail.  (Think no one will know? So  did Abramoff.)

    –> Although exceptions do exist, it is advisable that perhaps a $5,000 SuperBowl ticket is not a good time to try out the personal friendship exemption.  However, feel free to take your staffer/member/appointee staff spouse to Cowboys stadium (or surrounding bars/parking lots) Sunday.  HLOGA implicitly states that gifts from spouses are exempt.

    • The personal friendship exemption is, however, permissible if you are inviting a staffer/member/appointee to your Big Game party, assuming there’s a legitimate history of personal friendship.  If there is no such history, personal hospitality alone will not cut it.  Make the party potluck, and have your covered guest bring a dish.  If it’s the member’s party, costs must come out of his/her personal bank account, not a campaign fund or expense account.
    • Meeting at a bar to watch the main event?  Go ahead and spring for the pitcher of beer at halftime, whether there are covered officials present or not.  Nachos? Margaritas? Go for it, provided they’re of minimal value and offered in a social setting to everyone in the vicinity.  (BBQ chicken nachos with sour cream and refried beans are teetering awfully close to the official definition of a meal, however, so you may want to stick with ordinary cheese-and-jalapenos chips.)  You may NOT invite only the member/staffer/appointee to the bar and pick up ONLY his/her tab.  Unless of course the personal friendship, dating (more than casual), or marriage exemptions qualify as a personal relationship.

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    Compliance Tips for Lobbyists and their Congressional Valentines

    Wednesday, February 2nd, 2011 by Brittany

    Love is in the air on Valentine’s Day, and while some lobbyists may cry into a beer on “Singles Awareness Day,” other lobbyists may be out on romantic dates with congressional Members or staff. Yet dates may go awry between lobbyists and congressional employees not because of bad conversation or a case of being “just not that into you,” but because of ethics rules. Some tips are below from the Lobbying Compliance Handbook that will ensure that your date does not end up becoming a scandal.

     

    Dating

    Even before the changes to the ethics rules, lobbyists and Members/staffers had to face and answer to the myriad of social and personal customs, concerns, and expectations that come with being involved in a relationship. However, lobbyists and Members/staffers also now must factor in the application of the House and Senate ethics rules. There is no general exception in the rules for “dates.”  The rules and the exceptions must be applied to the stages of dating: 

    • Getting acquainted dates
    • Personal friends
    • Significant others
    • Fiancé or fiancée
    • Married

    There are exceptions under the gift rules that allow for gifts and entertaining for the advanced stages of dating.  But for first dates, blind dates and the beginning stages of any dating relationship, the rule is simply Dutch treat, period.

    Stages of Dating House Senate
    First dates, blind dates, initial stages of dating Dutch treat Dutch treat
    Personal friends
    • Evidence of reciprocal gift-giving
    • No reimbursement
    • Not related to official duties or actions
    • Evidence of reciprocal gift-giving
    • No reimbursement
    • Not related to official duties or actions
    		  
    Significant Others Personal friendship rule applies; no specific exception Senate Ethics Committee has granted a waiver which generally permits a Member / staffer to accept gifts from an individual with whom s/he enjoys a significant, personal, dating relationship. 
    Fiancé or fiancée Considered a gift from a relative and exempt but a letter to House Ethics upon receipt of an engagement ring valued at $250 or more is required to avoid disclosure of the ring as a gift Considered a gift from a relative and exempt but a letter to Senate Ethics upon receipt of an engagement ring valued at $250 or more is required to avoid disclosure of the ring as a gift
    Married Gifts from spouses are exempt Gifts from spouses are exempt

    While the Senate has recognized and codified the permissibility of gifts from significant others short of a formal engagement, the House has not done likewise.  Essentially, the personal friendship exception will apply in both instances, but it is important to note that there are always factors that must be present in order for either exception to apply.

    You may ask, “at what point does the ‘personal friendship’ exception kick-in between people who are dating?”

    And the answer is…who knows?  Just be prepared to answer that question under penalty of perjury if anyone with a badge ever asks. Until and unless the dating relationship has moved past the “initial phase” into the “personal friendship phase,” Members and staff must treat a lobbyist-date more as a lobbyist than as a date, which means paying his or her own way.

    For more information or to purchase the Lobbying Compliance Handbook click here.

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