Developers in Los Angeles Spend Heavily on Local Lobbying

June 23rd, 2016 by Matthew Barnes

In Los Angeles developers are investing heavily in lobbying. KPCC reports that, “In the first three months of this year, businesses of all kinds seeking support for their projects spent $13.5 million on lobbying, according to a new report from the city Ethics Commission. Nearly half the money was concentrated among ten lobbying firms. The ethics commission analysis of the top-spending ten clients shows nine of them spent a collective $1.4 million on lobbyists to contact city officials about building projects.”

According to the city Ethics Commission’s first quarter lobbying report Liner LLP was the highest paid lobbying firm bringing in $1,266,009 in revenue. Linner LLP represents several developers including Greenland LA Metropolis Development II LLC, Harridge Development Group, LLC, and LaTerra Development, LLC. Curbed LA has reported that the developers of the Crossroads of the World complex have spent the most money lobbying for so far this year spending $220,660. According to the report “this massive project would completely revamp Hollywood’s historic Crossroads of the World complex, adding eight new buildings including a hotel and two residential towers. It was the most-lobbied project during the first quarter of 2016 by a pretty wide margin.”

The $13.5 million spent on lobbying in the first quarter almost met the record for lobby spending, which was set in the last quarter of 2015 at $14 million.  However, if lobbying spending continues at the same level, “the annual total could top $54 million, a half-million dollars more than last year’s total,” reports KPCC.

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New York & Daily Fantasy Sports

June 17th, 2016 by Matthew Barnes

In New York, the decision to legalize fantasy sports is coming down to an end-of-session deadline this week. According to the Boston Globe, “The legislation would regulate and tax fantasy games while clarifying that they are not considered illegal gambling under state law. But if the bill isn’t passed before the Legislature adjourns June 16, then New York Attorney General Eric Schneiderman will likely resume his legal battle to permanently block DraftKings and FanDuel from the state.” Major fantasy sports companies DraftKings and FanDuel have been unable to operate in the state since November 2015.

Since its ban there has been an immense lobbying push to legalize fantasy sports in New York. The Boston Globe reports that “An industry lobbying group, Fantasy Sports for All, said fantasy enthusiasts had sent nearly 72,000 e-mails to legislators urging the state to pass the law. Moreover, the Wall Street Journal reported earlier this year that the fantasy sports “lobbying effort is being coordinated by the Fantasy Sports Trade Association and FanDuel Inc. and DraftKings Inc., the industry’s two biggest players. It involves 78 lobbyists in 34 states, up from four lobbyists a year ago, according to a person familiar with the matter. The companies are spending between $5 million and $10 million on the lobbying effort this year and are hoping to pass bills exempting fantasy sports from state gambling laws in at least six to eight states.”

Around the country fantasy sports industry is mounting an enormous lobbying campaign to pass favorable legislation. The efforts have so far succeeded in six states: Colorado, Indiana, Mississippi, Missouri, Tennessee, and Virginia. However, in Alabama, Arizona, Idaho, Iowa, Louisiana, Mississippi, Montana, Nevada, New York and Washington all, or almost all, fantasy sports operators are not permitted to take customers according to Legal Sports Report. Legislative success in New York would be seen as a crucial victory for those in favor of fantasy sports as the Boston Globe reports, “New York is the industry’s second-largest market, producing an estimated $267 million in entry fees in 2015, according to industry analyst firm Eilers & Krejcik Gaming.”

Senate Staff Dependent on Lobbying

June 2nd, 2016 by Matthew Barnes

On Thursday, May 19th the Senate Appropriations Committee unanimously approved the FY2017 Legislative Branch Appropriations Bill. However, unlike the amendment that was passed in the House, the Senate Bill did not address raising salaries for the chamber’s staff. The House Appropriations Committee approved an amendment that would “provide an additional $8.3 million to the Members Representational Allowance account, which funds official office expenses including staff, mail and travel. The provision would give each member’s office an additional $18,821 that members could use to raise their staff salaries. Lawmakers backing the proposal lamented the constant turnover of personnel leaving for better paying opportunities,” reports Roll Call.

As a result of the Senate’s failure to address the raising of staff salaries, Vox argues that “staff turnover will remain high, and that the staffers who inform and advise the senators on policy will remain younger and more inexperienced than private lobbyists, and will be stretched far too thin to do much of their own research. This means that the staffers will remain heavily dependent on lobbyists to explain policy to them, to give them ideas for legislation, to write bills for them and get co-sponsors for those bills, and to draft talking points for senators’ letters, op-eds, and speeches.”

In response to the approval of funding, U.S. Senator Shelley Moore Capito (R-W.Va.), chair of the Legislative Branch Appropriations Subcommittee said, “As the Appropriations Committee continues its consideration of each subcommittee bill, I am pleased to present a bill that is bipartisan and fiscally responsible.  In it, we seek to provide resources that enable the Legislative Branch of the government to do its job for the American people, and ensure the safety and security of the thousands of men and women who work in and visit our Capitol Complex every day,” according to a Appropriations Committee press release.

The Office of Government Ethics’ Rulemaking on Federal Executive Branch Gift Rules

June 1st, 2016 by Matthew Barnes

By:  Joseph M. Birkenstock & Josh Rosenstein  - Sandler Reiff Lamb Rosenstein & Birkenstock, P.C.

Since the 1970’s, regulations of the Office of Government Ethics, codified at 5 CFR part 2635, have established a broad set of ethics standards for employees of the executive branch of the federal government. These regulations focus on several specific areas: gifts from outside sources; gifts between employees; conflicting financial interests; impartiality in performing official duties; seeking outside employment; misuse of official position; and permissible outside activities.

Since the issuance of Executive Order 13490 by President Obama the day after he took office in 2009, OGE has now twice proposed broad new amendments to those executive branch ethics rules – and yet so far no new rules have been promulgated in the wake of either proposal. First in 2011 the OGE proposed mirroring the ban on gifts from lobbyists to presidential appointees imposed in EO 13490 in the overall gift rules applicable to all federal executive branch employees.

No final action was taken on that proposal, but in November 2015, OGE released another proposed rule that would revise the standards as they applied to the solicitation and acceptance of gifts from outside sources.  This most recent set of proposed changes would, among other things:

- Clarify the factors employees should use when evaluating whether they can accept an otherwise permissible gift;

  • In fact, the proposed regulations emphasize that the question of technical legal permissibility should not end an agency’s or an employee’s consideration of whether to accept a particular gift.

- Provide amended definitions of the term “gift” to permit, among other things, the acceptance of items of little intrinsic value given primarily for presentation;

- Explicitly permit the acceptance of free attendance at an event at which an employee is speaking;

- Permit the acceptance of certain membership fees, frequent flier miles, honorary degrees, and the like;

- Require written authorization from the agency ethics designee for employees to attend “widely-attended gatherings”

  • Broader limits on involvement by government contractors or other “prohibited sources” in the organization or execution of the gathering would still apply.
    • For example, if an association is hosting a widely attended gathering, a contractor that is a member of that association may not direct funds to the association for the purposes of inviting government officials.
    • However, that contractor may provide funds to sponsor the event generally, even if that sponsorship means that some additional government employees could attend at the invitation of the association as the sponsor.

- Specify that an employee can accept an invitation to attend a social event permitted under the current rule only when that invitation is unsolicited, and clarifying that the gift exception includes food, refreshments, and entertainment that are provided to the employee’s spouse or other accompanying guests.

  • When the sponsor of the event is an organization (rather than individual), however, the agency must provide specific authorization to attend.
  • The proposed rules contain a change that would be particularly meaningful to events like holiday parties or convention receptions relating to the availability of alcoholic beverages. As drafted, a new example to be added by the new rules would specify that “alcoholic beverages are not modest items of food and refreshments,” and that consequently it would be impermissible for an employee to even attend an event where alcohol is served, regardless of whether that employee does or doesn’t accept any alcoholic drinks at the event.

- Confirm that informational materials are generally exempt from the gift prohibition, similar to House and Senate rules.

- Codify the “prohibited source” list, which includes contractors and entities doing business before the official who is being offered the gift; anyone seeking official action by the agency; anyone who has interests regulated by the agency; anyone who has interests that may be substantially affected by the performance or nonperformance of the official’s duties; and any organization a majority of whose members are prohibited sources.

So, where is the regulation?

Despite being published in November, with a call for final comment in January 2016, no final rule has yet been issued.  Given the timing, even if the final rule does issue, it may not be issued prior to the new administration being sworn in next January. In fact, it’s worth considering whether the Congressional Review Act, which provides that Congress may disapprove any major agency regulations, might impact the timing of the regulations. This may be unlikely, since a given regulation needs to have an annual economic impact in excess of $100M to be considered a “major” regulation for this purpose, and the Notice of Proposed Rulemaking did not indicate that OGE considers these regulations to be subject to Congressional review and potential disapproval under the CRA.

Efforts to contact OGE about the status of this rulemaking have provided no new guidance.  The comment period, now closed for four months, makes one wonder whether the regulations—which languished for months initially—will be forthcoming.

Nevertheless, the political and advocacy worlds are already deep into the planning process for the major party national nominating conventions, election season, and the eventual January inauguration. These and other events always involve opportunities for private-sector sources (including those currently categorized as prohibited under existing regulations or the Obama executive order) to interact with executive branch employees in ways that can involve potential issues under the OGE gift & ethics rules.

Consequently, it’s worth bearing in mind that while new rules may or may not appear in the foreseeable future, the current regulations remain in place, so industry—particularly prohibited sources—should be sure to comply with existing guidance while retaining flexibility, to the extent possible, in their planning going forward to adapt to potentially significant new ethics rules.


New York State Advisory Opinion Broadens Definitions of Lobbying

June 1st, 2016 by Matthew Barnes

By: Jason Torchinsky – Holtzman Vogel Josefiak Torchinsky PLLC

In a January 2016 Advisory Opinion, the New York Joint Commission on Public Ethics (JCOPE) clarified reporting obligations for those individuals and entities compensated for consulting services in connection with lobbying activity. The Advisory Opinion, referred to as AO 16-01, specifically addresses grassroots lobbying, “door-opening” lobbying, and the presence of a consultant at a lobbying meeting.

Following the release of AO 16-01, several public relations firms filed suit in federal court to prevent the JCOPE from enforcing the portion of AO 16-01 that would require individuals who are being paid to discuss legislation with editorial writers to register and report with JCOPE as lobbyists.

The following summary will focus on the new advisory opinion and the ensuing litigation.

1.      Grassroots Lobbying

Although New York’s lobby law already covered “grassroots lobbying”, this type of lobbying required a “call to action” in addition to a reference to specific legislation and a clear position on legislation. As a result of AO 16-01, however, public relations professionals working on matters that directly or indirectly involve communicating with public officials are now considered to be engaged in these lobbying activities. A communication is considered to be grassroots lobbying when it:

(1)   References, suggests, or implicates a state or local “government action”;

(2)   Takes a clear position on the issue in question; and

(3)   Is an attempt to influence a public official through a call to action.

For example, a solicitation, exhortation, or encouragement to the public or a segment of the public to contact a public official is considered grassroots lobbying. Further, an individual or organization that participates in the formation of the content and delivery of such a communication may be considered to be lobbying. In other words, public relations discussions with editors about current or pending legislation may require registration if the discussions involve the formation of content and delivery of a communication.

Individuals engaged in grassroots lobbying must register with JCOPE as a lobbyist if they or their employer receives or expends more than $5,000 for this and/or any activity that New York State considers lobbying. JCOPE has noted, however, that public relations consultants would not need to disclose “the content or details of specific communications with reporters or others.”

2.      “Door Opening” Lobbying

Preliminary contact by a consultant with a covered official is lobbying if it is intended to enable or facilitate the ultimate advocacy.

Under AO 16-01, certain activities by a consultant may constitute reportable direct lobbying. Specifically, a paid consultant engages in reportable direct lobbying under this opinion when the consultant has preliminary contract with a public official to enable or facilitate lobbying by a client or has any direct interaction with a public official in connection with lobbying by a client. As a result, a person who makes introductions between a covered official and his/her client may need to register as a lobbyist even if he/she does not engage in any substantive discussion of an issue if his/her employer receives or expends more than $5,000 for this and/or any activity that NY State considers lobbying.

3.      Consultants Attending Meetings

According to AO 16-01, merely attending a meeting with a covered official may be sufficient to trigger registration. To be clear, an individual who has direct interaction with a public official in connection with lobbying must register. These interactions include, but are not limited to:

(1)   Verbal or written communications, including communications made for the purpose of facilitating access to a public official;

(2)   Attendance at a meeting with a public official; and

(3)   Presence on a phone call with a public official.

AO 16-01 does confirm the long-standing exemption that individuals who attend meetings with public officials to address technical questions are not considered to be lobbying. This includes individuals such as architects, scientists, and engineers among others. 

Examples of Lobbying Which Trigger Registration

Considering the broad scope and application of AO 16-01, it is worth noting certain examples that would trigger registration by an individual. Consider actions and communications like the following:

  • Rallies to “get involved”
  • Billboards with a call to “Contact the Governor”
  • Radio or television ads stating  “Tell your Senator”
  • Websites/online petitions to “click here to sign this petition to our Assemblyperson”
  • Letter writing campaigns organized to oppose a regulation before a State agency
  • Speaking to a trade group to encourage them to contact a public official about a specific government action
  • Appearing on television to support the client’s position with respect to a government action
  • Contacting a newspaper to encourage editorial board to support the client’s position

Pending Litigation

In March 2016, a group of five public relations firms filed a lawsuit in the Southern District of New York seeking to prevent JCOPE from enforcing the portion of AO 16-01 that would require public relations professionals, who are paid to discuss legislation with editorial writers, to register and report with JCOPE as lobbyists. The group claims that AO 16-01 violates the First and Fourteenth Amendments of the U.S. Constitution by unlawfully subjecting public relations firms to a disclosure and punishment regime designed for true lobbyists, when in fact, public relations professionals only speak to the press about public issues. The group further argues that the result of AO 16-01 is that public relations firms, their clients, and members of the press are deterred, chilled, and silenced in violation of their First Amendment rights. The plaintiffs are seeking a temporary restraining order that would prevent JCOPE from taking action to enforce AO 16-01. The Southern District of New York has authorized a temporary stay of enforcement of AO 16-01 as applied to the group of plaintiffs. However, litigation is ongoing and the parties will be filing briefs in opposition to, or in support of, the various motions before the Court in the coming weeks.  A decision in expected this summer.

Termination of a Registered Lobbyist

June 1st, 2016 by Matthew Barnes

By: Cleta Mitchell - Foley & Lardner LLP

The most common error experienced by my clients is properly terminating a lobbyist registration when a lobbyist leaves the firm or the organization or falls below the 20% threshold for lobbying registration for two consecutive quarters.   A full explanation of the procedures to follow can be found in the Lobbying Compliance Handbook, in addition to some sample forms and letters.

Below is a short checklist of the steps to follow when any person who is a registered lobbyist departs from the organization or ceases to be a lobbyist for the client or the organization:

1.  The LD-2 report is the key report reflecting termination.   Suppose Susan Lobbyist leaves the organization at the end of March, having worked on 3 clients (or 3 issues) during the first quarter.    The First Quarter LD-2 report, filed in April, must reflect the issues or clients on which Susan Lobbyist worked during the first quarter.   But, in addition, the organization/firm must complete Line 23, “Lobbyist Update”,  which asks for the names of ‘each previously reported lobbyist who is no longer expected to act as a lobbyist for the client.”  Susan Lobbyist’s name should be reported on Line 23 on the first LD-2 after ceasing to act as a lobbyist or departing from the firm or organization.

2.  Susan Lobbyist must still file an LD-203 for the January – June reporting period.  When Susan Lobbyist leaves the firm or organization, it is important to document that Susan must still file an LD-203 in July because she was a registered lobbyist for at least a portion of the reporting period.    The firm or organization should send written reminder before Susan leaves the firm/organization, which contains a statement that the LD-203 must be filed no later than July 20 (if Susan has departed at the end of March).  If Susan is leaving the lobbying industry altogether and is not planning to remain as a registered lobbyist,  the best practice is to have Susan file her LD-203 before she leaves her present position.   If Susan is planning to continue as a registered lobbyist in her next employment, providing a written document of the filing obligation is sufficient to protect the current employer from liability is Susan fails to file as required by law.

3.  Letters from the Secretary of the Senate and the House Clerk for failure to file.  If Susan fails to file the LD-203 as required, her last employer will be notified by the Senate Secretary and/or the House Clerk.   When those letters arrive, it is important to be able to respond with a copy of the written directive that had been provided to Susan prior to her departure.   However, the Secretary of the Senate and the House Clerk will also look to the last employer for whom Susan was registered to correct any problems with reporting.  Failure to have listed Susan on Line 23 of the first LD-2 following Susan’s departure will require an amended LD-2 to reflect her status as no longer lobbying for the organization or the client.

4.  Failure to respond to letters from the Secretary of the Senate or the House Clerk may result in a subsequent communication from the Department of Justice.  It is important to realize that simply because someone has departed from the organization or has stopped serving as a lobbyist does not relieve the registrant OR the organization from properly reporting all such changes.   Ignoring the letters from the Secretary of the Senate or the House Clerk will trigger letters from the Department of Justice – and ignoring letters from the DOJ can result in a lawsuit filed by DOJ seeking substantial penalties for disregarding the filing and reporting obligations.

It is not difficult to ensure that the lobbyist termination forms are properly completed and that all reports are duly and timely filed.   But it is important that steps are taken to know what is required and to proceed in the proper manner.

Too many firms, lobbyists and organizations simply fail to follow the simple process and face letters from the Department of Justice and threats of litigation and civil penalties.

Questions?   Refer to the Lobbying Compliance Handbook for more thorough explanation and suggested form letters.

Record Lobbying Donations in 2016 Campaigns

May 27th, 2016 by Matthew Barnes

As previously discussed in Lobby Blog, we are experiencing an election cycle filled with much anti –lobbying rhetoric from leading presidential candidates on both sides of the aisle like Sen. Bernie Sanders (I-Vt.) and Donald Trump. Nevertheless, lobbyists have come to play a significant role supporting many of the 2016 presidential campaigns through direct donations and fundraising. Lobby Blog has previously reported that Democratic presidential candidate Hillary Clinton “received more than $600,000 from more than 300 different registered lobbyists and PACs in the first half of 2015.”

The support for candidates from lobbyists has continued into 2016. According to the Hill, “Lobbyists may well give more in 2016 than they did in previous cycles… And with control of the Senate in play, it’s increasingly difficult for lobbyists from both parties to resist fundraising pleas.” Already in this election cycle “the top 20 givers among registered federal lobbyists, as identified by the nonpartisan Center for Responsive Politics, have collectively donated more than $2.5 million.”

The Hill argues that on the Democratic side one explanation of the increase in lobbying contributions is because of “new arrangements such as joint fundraising committees have also driven up the requests for money. And registered Democratic lobbyists, who for two presidential cycles were blocked by President Barack Obama from donating to his campaigns, have now been liberated. They have made Democratic front-runner Hillary Clinton the top recipient of K Street cash among White House hopefuls this election cycle. The Democratic National Committee is also once more welcoming lobbyist checks.”

Lobbyists, such as Pat Raffaniello, who runs Raffaniello & Associates, also argue that while there may be an increase in spending from the industry, it is nothing compared to the millions of dollars raised and donated to PACs by highroller groups such as hedge funds. According to Raffaniello “Unless you are raising hundreds of thousands of dollars, it seems like a wasted effort from a lobbying point of view…You don’t get on anybody’s radar screen.”  However, some like Nick Penniman, Executive Director of Issue One, argue that “direct donations from lobbyists to lawmakers and congressional candidates have special value, even if they’re comparatively low…Lobbyists don’t have the big checks, but lobbyists’ money, because it’s going directly to the campaigns, is pure gold…It’s the highest currency in political giving.”


Hedge Funds Launch New Lobbying Arm

May 19th, 2016 by Matthew Barnes

A new Washington D.C. based trade association has been created a select group of hedge funds. The new association is named the “Council for Investor Rights and Corporate Accountability,” or “CIRCA.” According to the Wall Street Journal, “it is the first coordinated effort by activists to make their case to lawmakers and the American public that their investment strategy helps, rather than harms, companies and the U.S. economy.”

CIRCA is supported by a consortium of five different activist firms, but does not name them in the press release. However, Reuters reports that, “According to a person with direct knowledge of the matter, the group’s backers are: William Ackman of Pershing Square, Carl Icahn, Daniel Loeb of Third Point, Paul Singer of Elliott Associates and Barry Rosenstein of Jana Partners.” The five backers manage approximately $90 billion according to the Wall Street Journal.

In recent weeks activist investors have come under fire and have attracted the attention of politicians. In March Senators Tammy Baldwin (D-Wis.) and Jeff Merkley (D-Ore.) introduced S.2720, “The Brokaw Act.” The act was cosponsored by Senators Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.).

According to Sen. Baldwin’s press release on The Brokaw Act, “The problem of short-termism is real and there is growing chorus who believe short-termism is holding America back from reaching its full potential to create stronger economic growth for our nation. Put simply, short-termism—also known as “quarterly capitalism”—is the focus on short time horizons by both corporate managers and financial markets. It results in corporate funds being used for payouts to shareholders in the form of dividends and buybacks rather than investment in workers, R&D, infrastructure, and long-term success. Activist hedge funds are leading the short-termism charge in our economy. They abuse lax securities laws to gain large stakes in public companies. Once there, they make demands to benefit themselves at the expense of the company’s long-term interests. The most common demands are for more debt, stock buybacks, reduced R&D, cost-cutting, layoffs, and general reduction any investment in long-term growth.”

In CIRCA’s press release Senior Advisor Rob Collins argues, “CIRCA was founded on the widely accepted idea that a well-functioning system of checks and balances between boards of directors and shareholders is fundamental to long term economic growth and U.S. prosperity,”  according to the Reuters report.

Contractor’s Return on Government Relations Spending

May 11th, 2016 by Matthew Barnes

New analysis of lobbying spending and government spending from MapLight has revealed that in the past decade U.S. government contractors have received $1,171.00 in taxpayer dollars for every $1.00 that they contribute to lobbying and PACs. MapLight reports, “The 25 largest federal contractors, as ranked by value of contracts received during the 2014 fiscal year, have received almost $1.6 trillion for their work since October 2005. These companies spent about $1.2 billion on lobbying and contributed more than $150 million to PACs during that time, according to MapLight’s analysis of federal procurement data and lobbying and PAC contributions from the Center for Responsive Politics.”

The return for every dollar invested in political influence between October 2005 and September 2015 by the three largest government contractors is listed below. All figures are provided by MapLight.

  • Lockheed Martin Corp. – Spent at least $140 million on lobbying and political contributions and received $331 billion in federal dollars, yielding a $2,366 return on every $1 invested.
  • Boeing Co.- Spent $150 million on lobbying and political contributions and received $201 billion in federal dollars, yielding a $1,341 return for every $1 invested.
  • General Dynamics Corp. Spent $96 million on lobbying and political contributions and received $136 billion in federal dollars, yielding a $1,421 return for every $1 invested.

Interestingly, MapLight reports that not all major government contractors have relied on heavy spending on lobbying. “The consulting firm Booz Allen Hamilton, based in the Washington, D.C., suburb of Tysons Corner, Virginia, has earned $29 billion in government contracts since October 2005. During the same period, it spent $80,000 on lobbying and none on political contributions, giving it a return of $362,564 for every $1 spent on political influence.”

The Push for Self-Driving Cars

April 27th, 2016 by Matthew Barnes

Taking a big step forward for self-driving cars, Ford Motor Co., Google, Lyft, Uber Technologies Inc. and Volvo Cars joined together to form “The Self-Driving Coalition for Safer Streets.” The goal of the group, according to Automotive News is to “work with lawmakers, regulators, and the public to realize the safety and societal benefits of self-driving vehicles…The five companies, which all are working on self-driving cars, say one of the group’s first tasks is to ‘work with civic organizations, municipalities and businesses to bring the vision of self-driving vehicles to America’s roads and highways.’” Reuters reports that in “2014 there were 32,675 fatalities and 2.3 million injured in 6.1 million crashes on U.S. roads. NHTSA says about 94 percent of all traffic crashes are caused by human error.”

The coalition will retain David Strickland as its counsel and spokesman. In a statement Strickland said, “”The best path for this innovation is to have one clear set of federal standards and the coalition will work with policymakers to find the right solutions that will facilitate the deployment of self-driving vehicles.”

Strickland is a Partner in Venable’s Regulatory Group. Before that he “served as the fourteenth Administrator of the National Highway Traffic Safety Administration (NHTSA).  As the top automotive safety official in the United States, he was responsible for executing the agency’s mission to reduce crash-related fatalities and injuries while insuring the highest standards of safety on the nation’s roads.”

Strickland has experience lobbying for auto industry groups according to his lobbying disclosures. He also represents Cox Automotive and the Association of Global Automakers.

The lobbying push for self-driving vehicles has started to grow in recent weeks with other prominent organizations such as General Motors hiring lobbyists to represent their interests on the issue. GM “brought on The Fritts Group, a boutique lobbying firm, to advocate on self-driving cars, connected cars and cybersecurity privacy, according to a disclosure filed” in early-April reports The Hill.

One possible reason for the lobbying push is that U.S. Secretary of Transportation Anthony Foxx has previously announced that he planned to develop policy for autonomous cars by this summer. In January, The Verge reports, Secretary Foxx announced that, “within six months, his agency will work with states, manufacturers, and others to develop a “model” state policy for autonomous cars with the goal of creating a consistent national policy.”

2016 Convention Fundraising

April 20th, 2016 by Matthew Barnes

As we move into summer, those who are closely following the 2016 presidential campaign cycle have begun to start to looking ahead to the national party conventions in July and all the political drama that is expected with them. The Republican National Convention will be hosted in Cleveland from July 18th-21st, with the Democratic National Convention, kicking off the next week in Philadelphia from July 25-28th.  

However, this year’s conventions are facing an unforeseen challenge: corporate sponsorship. Both Republicans and Democrats are having trouble fundraising for their conventions. Politico reports, “Several Fortune 500 companies — including Bank of America, Duke Energy and Time Warner —are taking a pass on chipping in for the Democratic convention in Philadelphia or, with just 100 days to go until the event, won’t say whether they’ll participate. Target, which has had a presence at both parties’ conventions in the past, is joining other companies in skipping this summer’s events in Philadelphia and Cleveland.”

While the reason for not sponsoring a convention will vary from company to company, the New York Times has reported that, “Some of the country’s best-known corporations are nervously grappling with what role they should play at the Republican National Convention, given the likely nomination of Donald J. Trump, whose divisive candidacy has alienated many women, blacks and Hispanics.” This has had a knock-on effect for the Democrats as many companies prefer to give to both the Democrat’s and Republican’s convention, or neither of them. According to the Politico report, “People are more hesitant this time,” said one the lobbyists, who has worked at previous conventions. “And the clients that end up going don’t want to be featured as a marquee sponsor. Before, you would be fighting for signage. Now it’s about, let’s not fight [for] any branding.”

No matter the outcome in regard to fundraising, the conventions are fast becoming a must see political event.

Changing Culture at CREW

April 14th, 2016 by Matthew Barnes

In the backdrop of a highly polarizing election year, Bloomberg investigates changing culture at the Citizens for Responsibility and Ethics in Washington, or CREW, a high profile government watchdog group.  According to the group’s website, the “Citizens for Responsibility and Ethics in Washington (CREW) is a nonprofit 501(c)(3) organization dedicated to promoting ethics and accountability in government and public life by targeting government officials who sacrifice the common good to special interests. We advance our mission using a combination of research, litigation, policy advocacy, and media outreach. CREW employs the law as a tool to force officials to act ethically and lawfully and to bring unethical conduct to the public’s attention.”

However, Bloomberg reports that “Over the past two years…some of the group’s most influential work has been quietly dropped. Annual rankings of the “most corrupt” members of Congress and a bi-annual list of the “worst” governors have stopped. A pipeline of in-depth reports on issues ranging from financial markets to timber-industry lobbying has gone dry. The group walked away from a spat over Hillary Clinton’s treatment of e-mails as secretary of state, even after an Inspector General found that CREW’s public records request had been improperly denied.”

The Bloomberg report identifies the addition of prominent Democratic operative David Brock as a Member of the Board in 2014, as a changing point in the direction of CREW’s mission, goals and culture. Demonstrating the changing culture associated with Brock’s arrival, Bloomberg highlights the change in CREW’s legal filings. “By 2013, CREW was filing an average of eight federal lawsuits each year, with a peak of 15 in 2007, public records show. In the nearly two years since Brock arrived in August 2014, the group has filed a total of four.”

Co-Founder and former Board Chair of CREW, Louis Mayberg, has pointed to the more partisan orientation of the organization after Brock’s arrival contributed to his decision to resign from the board in March 2015 saying, “I have no desire to serve on a board of an organization devoted to partisanship.”

Nevertheless, CREW’s Communication Director, Jordan Libowitz, has said “The board membership may change, but we have always maintained the highest level of integrity and absolute independence in the work we do—and that remains the case.”

Daschle Registers to Lobby

March 30th, 2016 by Matthew Barnes

In a surprising turn of events, Former Senate Majority Leader Tom Daschle (D-S.D.) has officially registered as a lobbyist. According to The Hill, “He is part of a team at Baker Donelson Bearman, Caldwell & Berkowitz that is lobbying for the health insurer Aetna, according to forms filed to the Senate. The disclosure forms say the the team will be working with the insurer — which recently withdrew from a major industry trade group, America’s Health Insurance Plans (AHIP) — on issues related to the Affordable Care Act and Medicare Advantage, among other things.”

Prior to his registration as a lobbyist, the term the “Daschle loophole” has become popularized as a way to describe the ability of former officials to cash in on K Street without registering as lobbyists. Politico reports that this is done by either “avoiding direct contact with lawmakers or by spending less than 20 percent of their time lobbying. Daschle always maintained his activities didn’t qualify as lobbying, but those who worked with him said he didn’t want the “Scarlet L” to jeopardize his prospects of returning to public office. His nomination to be Obama’s health secretary was nevertheless thwarted by a tax error.”

Since losing his Senate seat in 2004, Daschle worked at “Alston & Bird, then DLA Piper, and, since late 2014, Baker Donelson, where he set up his own subsidiary, The Daschle Group,” according to The Center for Responsive Politics.

Venezuela Lobbying in Legal Fight

March 24th, 2016 by Matthew Barnes

In a strategic move, Venezuela has registered part of its legal team at Hogan Lovells as lobbyists in its international dispute with a U.S. oil company that could land before the Supreme Court. This move will enable them to “sit down with Justice Department lawyers as the legal fight intensifies,” reports to The Hill. The firm “will seek to meet with the Justice Department’s solicitor general, according to forms filed under the Foreign Agents Registration Act signed by counsel Bruce Oakley, the managing partner of the firm’s Houston office.” In 2015 Hogan Lovells brought in $12.6 million in lobbying revenue according to data compiled by the Center for Responsive Politics.

Oil rigging company Helmerich & Payne brought a legal challenge against Venezuela following a drilling dispute in 2010. The Hill reports, “Helmerich & Payne’s local subsidiary — H&P-V — had been operating in the country for decades. But in 2010, following a contract dispute with the state-owned oil company, Helmerich & Payne said its subsidiary would stop drilling in the country. The country’s National Guard then blocked off 11 rigs with its boats, and Venezuela seized the subsidiary’s oil rigs and other equipment. The confiscation was part of then- Venezuelan President Hugo Chávez’s move to nationalize his country’s oil industry.” According to the suit the confiscation of the oil rigs and equipment breached a contract, hurting the Oklahoma-based parent company and violating international law.

As the case progresses Venezuela’s lobbyists will likely urge the administration to ask the Supreme Court to take up the case after filing documents with the court encouraging action.

Legislative Fly-In App

March 16th, 2016 by Matthew Barnes

As D.C. emerges from a snowy winter, the legislative fly-in season is already off and running in the warm sunshine of spring. This week the Hill is playing host to the American Bankers Association, which has 1,000 people attending its summit this week according to Politico. For anybody who has organized one of these events, they know it is a painstaking task. To help reduce the stress of running an advocacy day the U.S. Congress Handbook, known for its customizable guides on our members of Congress, has launched their new Advocacy Day Assistant smartphone app. The app allows users to schedule, coordinate and update Hill meetings with ease, stay in constant contact with advocates, upload talking points, and get real-time feedback throughout an advocacy day.

Joel Poznansky, the publisher of the Original US Congress Handbook has said, “After years of working with clients to create custom advocacy tools with our line of US Congress Handbooks, the natural next step was to develop and app. We’ve partnered with the expert app developers at NWYC and fly-in expert Stephanie Vance of Advocacy Associates to put together the most comprehensive and user friendly advocacy day app available.”

The app is full of features that make it the ideal tool for advocacy days on the Hill. You’ll be able to view congressional profiles with biographies, vote history, committee assignments, recent news articles & links to each member’s social media profile, as well as the ability to research bills. These features can also be customized for each individual user based on their meetings schedule. You’ll also never have to worry about your advocates getting lost in the maze of buildings and hallways on the Hill. The app has built in Google Maps integration, allowing users to navigate the corridors of power with ease.

While on an advocacy day you’ll also be able to keep in constant communication with your advocates using the app’s advocate to advocate messaging. The app can also send real-time schedule updates with push notifications allowing users to update advocates about any last minute meeting changes. Moreover, you’ll be able to stay in touch with advocates and receive feedback from them after the advocacy day through post fly-in surveys with push notifications.

As exemplified above, like the U.S. Congress Handbook, the app is also highly customizable. You can customize the look and feel of your app using one of four template options, create a custom splash page for your organization, add your logo and branding within the app, provide space for advertisers & sponsors, pre-load customized hashtags for tweeting, and even upload up to 20 custom documents for your advocates including: talking points, event schedules, handouts, etc.

Utilizing powerful tools like the Advocacy Day Assistant can help to greatly improve an advocate’s experience and the overall success of an advocacy day, while greatly reducing the stress of organizing such an event. Lobby Blog will continue to monitor this space and provide insights into the latest tools that help government relations professionals successfully get the job done.