Weekly Lobbying News Round-Up

October 1st, 2010 by James

GOP members of the House Ethics Committee want Rep. Zoe Lofgren to just schedule trials for Reps. Waters and Rangel already! (Roll Call)

Jack Abramoff was spotted in Dupont Circle on Tuesday, having a discussion with some friends about “writing a book,” according to Roll Call.

Rep. Zack Space (D-Ohio) has been a public proponent of cutting lobbyists’ ability to give campaign contributions, and has also pledged not to accept any lobbyist campaign contributions himself. The GOP is hitting Rep. Space by claiming that his acceptance of “special interest” PAC money and contributions from lobbyists’ family members constitutes the same thing.

State and Federal Communications has a new e-newsletter up – Compliance Now, October 2010.”

Good government groups point out the continued absence of the Ethics.gov website. Article from The Hill.

Advocacy is all about customization, according to Amy Showalter.

Rep. Chellie Pingree (D-Maine) was getting in hot water from several groups for her use of a private jet… but the airplane was cleared for her use by the Ethics Committee, since it is owned by her fiance.

Quote of the Week:

“There is definitely a big distance from President Obama’s Ethics.gov campaign promise and what they have done so far… They are failing to live up to their promise, but their promise was aimed very high.” – John Wonderlich, policy director for the Sunlight Foundation, The Hill, 10/1/10

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Magliocchetti Enters Guilty Plea

October 1st, 2010 by James

The Justice Department announced last Friday that ex-lobbyist Paul Magliocchetti had pleaded guilty to making illegal campaign contributions and making false statements in a federal district court in Alexandria, VA.

Magliocchetti, the founder of defense appropriations lobbying shop the PMA Group, had previously entered a not-guilty plea. Prosecutors said Magliocchetti had admitted to funneling funds through family members and his firm’s lobbyists to Members of Congress with whom he was doing business. Magliocchetti admitted to knowledge of the campaign finance limits – both personal, and corporate. There was no mention of the lawmakers to whom Mr. Magliocchetti had been funneling donations.

Mark Magliocchetti, son of Paul, had previously pleaded guilty to an separate charge of making illegal campaign contributions. Mark Magliocchetti had worked at PMA Group.

Paul Magliocchetti is scheduled to be sentenced in December. The three charges to which he has pleaded guilty carry up to a five year sentence. Magliocchetti had previously been indicted on 11 charges; the eight charges to which he did not plead guilty will be dropped as part of his plea bargain.

Read more about the case at the Blog of Legal Times, the New York Times, Politico, and from the Justice Department.

What’s in a Name?

September 30th, 2010 by Autumn

Everyone knows that one of the keys to being a successful lobbyist is name recognition.  While this requires a lot of hard work and networking for most, some lobbyists have it a bit easier.  After having  reviewed the names of thousands upon thousands of government relations professionals, here is a small sampling of some of the names that caught my eye immediately.

The other Harry Henderson.

Harry Henderson Jr. is no monster/hit-and-run victim from the Pacific Northwest.  As President of Anchor Consulting he lobbies for the Boys & Girls Club of Santa Clarita Valley.

I hold this Dave Thomas responsible for my teenage obesity.

What do you do if you share your name with the founder of fast food chain Wendy’s?  David Thomas, Principal at Mehlman Vogel Castagnetti Inc. did his part by representing the American College of Cardiologists.  These days, Thomas has found himself another obvious client, the National Restaurant Association.

Be sure to consult The Lobbying Compliance Handbook before buying that round of martinis.

Brian Griffin is one of the top dogs at The Duberstein Group.  His scholastic cartoon counterpart would be pleased to know that Brian lobbies for the National Math & Science Initiative.

Deciding on which Kate Moss picture to include was the high point of my day today.

Having the same name as a supermodel wasn’t enough for Kate Moss, the president of the aptly named Kate Moss Company.

This picture might get my mom to start reading Lobby Blog.

It’s not unusual that Tom Jones, president of Federal Business Navigators, recently accompanied a client to a business meeting with the Department of Defense.

Cue loud screaming.

A lot of children can say “I feel good” due to the hard work of Christine James-Brown, the president and CEO of the Child Welfare League of America.

The only thing better than sharing a name with one tv character is sharing a name with two.

You can see Olivia Benson and Elliot Stabler, the alter egos of the Episcopal Church’s GR professional David Benson-Staebler, Wednesday nights at 9 on NBC.

Compliance Q and A: Recovery Act Lobbying

September 29th, 2010 by James

ARRA Road Sign

Q: A few government agencies are still handing out stimulus money… and we may see another stimulus package passed. Are there currently any special restrictions on lobbyists regarding stimulus funds?

A: The Office of Management and Budget (OMB) released final guidance regarding the restrictions on communications with the executive branch related to American Recovery and Reinvestment Act (ARRA), also known as stimulus funds, on July 24, 2009.

The guidance allows lobbyists to speak with agency officials, but does restrict oral communications for registered lobbyists and non-lobbyists starting at the point when an application for funding has been submitted and ending at the point where the funding has been awarded.

Exceptions apply when the communication occurs at a widely attended gathering or the inquiry is of a logistical nature, as detailed in the guidance. Communications with lobbyists are still required to be disclosed by the agency official. Previously, the Obama administration and OMB stated that registered lobbyists were only able to submit written communications regarding specific ARRA projects.

Have a question for Compliance Q&A? Email your question to ehill@columbiabooks.com.

New Audioconference on Congressional Investigations and Testimony

September 28th, 2010 by Brittany

Congressional Investigations and Testimony:
Practical Strategies for Proactive Prevention, Damage Control and Success

October 14, 2010 2:00-3:30 pm EST

Congress wants answers. Financial services providers, “Big Oil,” and the insurance industry are already in the cross-hairs. With ethics, the budget and the stimulus creating a high-pressure, high-visibility environment, the possibility for many more individuals and organizations to face Congressional questioning is increasing daily.

What if you’re called upon to provide testimony or to advise a client who has to go before Congress?  What if you’re asked to present documents?  Will you be prepared to deal with PR issues – and prevent possible leaks?  Will you know how to negotiate terms of a hearing? Act now to arm yourself with a practical strategy for handling – and ideally avoiding -  congressional investigations.

Register now for Congressional Investigations and Testimony: Practical Strategies for Proactive Prevention, Damage Control and Success.

The 90 minutes you invest in this audioconference could literally make the difference between promoting your agenda successfully and losing everything. Top GR attorneys map out steps to take now that will empower you to prepare executives to testify successfully and avoid becoming the focus of a congressional investigation.

Click here to register.

Recession brings in the bacon for K Street

September 27th, 2010 by James

A down-economy has been a boon for lobbying firms, according to an article by the Washington Post. The article focuses on cash flow in both law firms and lobbying firms in DC, over the past two years.

Massive layoffs in law firms in 2009 and slower flow of business since the start of the recession in 2008 have been detrimental to the organizational health of most law firms in the DC area. But a focus on regulatory law and advice has led to success for some firms.

Certain firms are building strategic practice groups of lawyers with regulatory focus in some of the past year’s biggest legislative issues – environmental policy, healthcare law, and financial regulatory policy.

Lobbying firms are stronger this year than ever before. Almost all of the top ten lobbying firms (by revenue), reported revenue increases over the past several quarters. According to the Post, only three of the largest law firms in the area have increased their attorney count, and two of them, Covington & Burling, and Patton Boggs, also have a very strong government relations / lobbying side to their business.

The Post notes this “synergy” and quotes Bruce Heiman of K&L Gates, saying that the double-sided nature of law plus lobbying may bring greater success, saying that even placement of a comma in a legal document might be the difference between success and failure in a client’s bill: “You just have to [see] that once or twice to pay very close attention to what is it that you’re lobbying for and thinking about how a judge will ultimately interpret the language … I think that gives you a perspective on things that some folks don’t have.”

Washington Post article is here: “Law firms have struggled, but recession proved to be bullish for lobbying shops.”

Revolving door financially benefits staffers

September 27th, 2010 by James

A recent academic study on the financial benefits that lobbyists draw from the practice of the “revolving door,” found that “Lobbyists with experience in the office of a US Senator suffer a 24% drop in generated revenue when that Senator leaves office.” The study found that committee assignments and length of time in office (things which add up to “influence”) also increase revenue for ex-staffers turned lobbyists.

The researchers point out that “While there is no scarcity of anecdotal evidence, direct econometric evidence on the extent to which previous officials are able to convert political contacts into lobbying revenue remains, to the best of our knowledge, non-existent.” But the study purports to provide such evidence. The authors point out that “measured in terms of median revenues per ex-staffer turned lobbyist, this estimate indicates that the exit of a Senator leads to approximately a $177,000 per year fall in revenues for each affiliated lobbyist.”

Several recent articles have pointed out the lobbyist potential for Hill staffers with close connections to members who may be in positions of even greater power after November, such as Reps. John Boehner, Eric Cantor, or Dave Camp, all Republicans who are in line for powerful House majority jobs should the chamber flip.

The researchers used several tools, including the Center for Responsive Politics’ database, Legistorm.com, and Lobbyists.info. The entire report is available at http://cep.lse.ac.uk/_new/publications/abstract.asp?index=3654.

Read more at the Lobby Blog:

DISCLOSE Act fails… again

September 27th, 2010 by James

The DISCLOSE Act came up for a cloture vote again in the Senate on Thursday, September 23. The Democrats’ campaign finance reform bill has been on life support since it failed a prior cloture vote in July. The newest vote, which failed on party lines, 59-39, was seen as a last-ditch attempt to get a top priority through the Congress.

The Democrats, led by Sen. Chuck Schumer (D-N.Y.), had promised to bring the bill to a vote after the August recess, when they said that Republicans’ suspicions about the timing of the bill being intended to benefit Democratic incumbents in November’s mid-terms would be mitigated. However, Democrats were unable to sway moderate Republican Senators Susan Collins and Olympia Snowe (Maine) and Scott Brown (Massachusetts) into supporting the legislation.

President Obama’s office released a statement saying the President was “deeply disappointed” by the bill’s failure to pass. The President has been pushing for the “fix” to the Citizens United decision since the House passed their version of DISCLOSE in June.

CQ Politics reports that it may be a possibility that the legislation will keep coming back – “but it is unclear whether Majority Leader Harry Reid (D-Nev.) will try to take the issue up again during a lame-duck session.

The CQ Politics article is here:   “Senate GOP Again Blocks DISCLOSE”. Read more about the DISCLOSE Act here, and at Eric Brown’s site (for news round-ups).

Industry Moves and Changes

September 27th, 2010 by James

Betsy Phillips has been named executive vice president of McBee Strategic Consulting. She previously served at the House Appropriations Committee as a professional staff member for 25 years.

Matt Thornblad has been hired as director of energy and environmental government affairs at United Technologies Corp. Thornblad previously served as legislative assistant to Sen. Tim Johnson (D-S.D.).

Jonathan Prince has been hired as partner at Chlopak, Leonard, Schechter & Associates. Prince most recently served in the Obama administration as a deputy assistant secretary of State.

Wendy Kirchoff has been named director of federal resources and legislative affairs at the Independent Petroleum Association of America. Kirchoff previously served as legislative director for Rep. Dan Boren (D-Okla.).

Elizabeth Gore, a former top aide to Sen. Byron Dorgan (D-N.D.), has been hired by Brownstein Hyatt Farber Schreck as a policy director in its government relations group.

Weekly Lobbying News Round-Up

September 24th, 2010 by James

The Hill reports on Kenya’s lobbying expenditures. According to the article, “Lobbyists for the KenyanWeekly newsgovernment have focused on strengthening security ties, as well as increasing trade, between the two countries. They have also worked to secure a direct flight route between Atlanta and Nairobi.” The article further reports that the African nation has retained Chlopak, Leonard, Schechter and Associates (CLS) for PR services and  the Moffett Group to provide lobbying services.

Round-up of some articles on the DISCLOSE vote, from Eric Brown.

Need a quick look at the House ethics process? Ethics lawyer Stan Brand takes you through some of the steps. (Video).

Open Secrets notes this study on the “revolving door” from the London School of Economics, which found that ex-staffers turned lobbyists benefit financially from being in influential offices.

Eliza Newlin Carney of National Journal writes on Rep. John Boehner and Speaker Nancy Pelosi’s lobbyist / special interest ties will matter to voters. “Will Boehner’s Bucks Rankle Voters?”

Quote of the week:

“The recession has actually created a map where all roads now lead to Washington.” – Kevin O’Neill,  Patton Boggs, Washington Post, 9/20/2010

“It is true that my fights against powerful special interests have not made me popular with the Washington crowd… I take the fact that I’m considered the lobbyists’ number one enemy as a compliment, because my job is to fight for the people of Wisconsin, not the special interests in Washington.” – Sen. Russ Feingold (D-Wisc.), Politico, 9/20/2010

“Democrats don’t like to go to K Street as much as Republicans do…  Republicans ‘don’t care. They will work for oil, energy, gas, PhRMA, insurance, cigarette companies, gambling. It’d take something pretty damn bad for them not to do it.’” – “K Street recruiter,” Roll Call, 9/20/2010

Cupcakes need lobbyists too

September 23rd, 2010 by Brittany

We promise Eric didn't actually eat this whole tray. At least that's what he told us to say!

Today I brought in 70+ mini cupcakes to the Lobbyists.info offices and was trying to figure out a way to tie my new love/hate relationship with baking to my actual job. That got me thinking that cupcakes probably have lobbyists too!

After conducting some “cupcake” research in our lobbying database I discovered that they apparently have several groups lobbying for them including:

So in summary, we are currently seeking a physician to handle the sugar overdose epidemic which has recently struck the Lobbyists.info staff.

Compliance Q and A: Quarterly Filing

September 22nd, 2010 by James

Q:  When someone refers to an LDA “quarterly filing,” what are they talking about?

A: Under the LDA, as amended by HLOGA in 2007, there are three different kinds of filing required:

  1. LD-1: also known as a “registration” – this registers a lobbying firm or corporation to register on behalf of an certain issue; this is a one-time report which must be filed within 45 days of the first lobbying contact
  2. LD-2: quarterly report that is filed by the original registrant (the lobbying firm or corporation). These reports are due 20 days after the close of each quarter (April 20, July 20, Oct. 20, and Jan. 20). This report is not for individuals, but it does list individuals working for a firm or corporation who are engaging in lobbying activity.  Please note that individuals may be required to file this form if they are acting in a sole-proprietor capability.
  3. LD-203: a twice-yearly form required for both organizations and individuals; due July 20 and January 20. Please note that individuals who are acting in a sole-proprietor capability will need to file two reports – one on behalf of their organization, and one in their individual capacity.

Have a question for Compliance Q&A? Send your questions to ehill@columbiabooks.com.

Tuesday Ethics Tip: Deregistering as a Lobbyist

September 21st, 2010 by James

Since there are always some lobbyists that seem to be confused over whether, or when, to take themselves off the roster of lobbyists on LD-2 forms, here’s a refresher on de-registering as a lobbyists.

Lobbyists must be removed from the form LD-2 (the quarterly form stating income or expenditures on lobbying), on Line 23 of a current LD-2 form in order to be considered inactive. This “inactive” status frees them from the obligation of filing an LD-203 (the semi-annual filing of lobbyist campaign contributions).

As for de-registration triggers, lobbyists must de-register when have a reasonable expectation or knowledge that they will no longer be working on behalf of a particular client or issue.

Until a lobbyist is formally de-registered (using Line 23), he or she is obligated to file Form LD-203.



Lobbyist Campaign Contributions

September 20th, 2010 by James

This story about Del. Eleanor Holmes Norton (D-District of Columbia) that ran on Big Government ran with an emphasis on the “heavy-handed” method with which Holmes Norton approached the unnamed lobbyist. But the bigger issue is that members of Congress are prohibited from soliciting campaign contributions in connection with official actions and duties.

Big Government points out that:

“More serious… is her frequent mention of her seniority and her Chairmanship of a subcommittee. She is attempting to solicit funds based on her past actions taken in her official capacity in Congress. She is implying to the lobbyist that, should he decline to donate, he will be turning down a senior member of Congress who Chairs a subcommittee highly relevant to his ‘sector’.”

Because Big Government did not release the name of the individual for whom Holmes Norton left this voicemail, it is impossible to state with conviction that Holmes Norton’s actions were directed toward a federally-registered lobbyist. (The lobbyist to whom the article’s authors are referring may be a “government relations” person, not registered under the Lobbying Disclosure Act).

Some lobbyists simply decline to make any kind of political contributions at all, claiming this helps them to not only remain in compliance with the law, but also gives them leverage when members or staffers try to pressure them into contributions. You may want to follow suit. If you are a lobbyist and you are approached by a member of Congress (or a member’s staffer) for campaign funds or other types of solicitations, don’t walk, run, for several reasons.

First, as a lobbyist, it is your job to attempt to influence (on behalf of your clients), official action. There is no prohibition against such action; it is a Constitutionally-protected right to advocate for your chosen position.

Second, because your professional life is a series of attempts to influence official actions, any professional contact with members or staffers is probably in the context of influence.

Therefore, your professional actions and influence are closely connected. Your professional life is closely linked with your personal life, and making a campaign contribution to a member of Congress with whom you have daily/weekly/ monthly contact regarding official actions just looks bad.

In this situation, being above reproach with help you tremendously. It may not be against the law to contribute – and you should certainly feel free to do so if you believe that there is no harm in doing so, and your efforts are not connected to official actions. But it may help you enormously to consider stopping all direct political contributions while you remain a federally-registered lobbyist. A better course of action, if you feel that donations are something you want to do regardless, might be to donate to PACs unconnected to members, or to party committees.

Do note that members are strictly prohibited from soliciting gifts from lobbyists.

Weekly Lobbying News Round-Up

September 17th, 2010 by James

After last week’s surprise upset in Alaska (Joe Miller over Lisa Murkowski in the GOP Senate primary), Roll CallWeekly newsreports that lobbyists were quick to shift their financial and fundraising support from Murkowski to Miller. Article here.

The New York Times report on John Boehner’s lobbyist ties is examined a little more fully in our post, here. Boehner also responded via the Washington Examiner.

Pepsi and Coke both have new lobbyists in DC… maybe this will spark the huge Pepsi v. Coke epic battle we’ve all been waiting for. (Although I won’t lie, as a Michigander, I prefer Faygo).

John Doolittle, who earlier this year complained that the (cleared) ethics investigations against him were making supporting work difficult, has found a job lobbying for Colfax City, California.

Lots of ethical dilemmas and strong words being traded back and forth regarding House ethics.. Rep. Michael McCaul (R-Texas), one of the Ethics Committee members,  faces his own ethics and disclosure issues. Various public interest groups try to get Nancy Pelosi and John Boehner to publicly agree to support the OCE in the next Congress.

Ross Garber comments on Public Corruption charges post Skilling (discussion of Kevin Ring case included). See our posts about Kevin Ring and Skilling.

Following up on our report earlier this week that lobby shops are looking to up their GOP quotient ahead of the midterms, Roll Call reports on the Democratic job prospects on K St.

We anxiously await word on the fate of DISCLOSE.

Rep. Eleanor Holmes Norton (D-District of Columbia) was recorded leaving a voicemail on an unnamed lobbyist’s phone, asking for campaign contributions, and doing it in a manner that implied a reminder of Holmes Norton’s power status in the lobbyist’s “sector.” More on this story in our Monday post on lobbyist campaign contributions.

From the Canadian Society of Association Executives, a post on “Enhancing Grassroots Advocacy Through Social Media.” Worth a read.

The LA Times has an article on Kevin Spacey’s role as  Jack Abramoff in the upcoming “Casino Jack.”

Reports abound that Paul Magliocchetti is changing his “not guilty” plea in his 11-count indictment.

Three Obama administration employees never deregistered as lobbyists before taking their new jobs, according to OpenSecrets blog.

Quote(s) of the week:

“There may be a new gang in town after November,” said Hellmann, a former aide to then-Speaker Dennis Hastert (R-Ill.). “The climate will be better for the business community on taxes.” (Roll Call, 9/13/2010)

“A lot of people want to have coffee now.” – Gordon Taylor, Ogilvy Government Relations, about staffers seeking advice on how to navigate the job market (Roll Call, 9/14/2010)

“Once he’s done with his house arrest, he may decide to speak out about the lobbying industry… He’d be credible if he takes responsibility for what he did, which he has, and exposes the hypocrisy he was a part of.” Kevin Spacey on Jack Abramoff (LA Times, 9/14/2010)