New law will create slew of unwitting lobbyists
8th January 2010
For public relations executive Amy Goodrich, the new year meant a new addition to her job description: lobbyist.
The senior vice president for communications and public affairs at Liberty Square Group in Boston registered as a lobbyist in response to Massachusetts’ new lobbying law. Although she handles mainly PR work for organizations like unions and nonprofits, she and several of her co-workers are being cautious.
“We’re doing everything we can so we’re on the safe side,” Goodrich said.
Like Goodrich, more employees at PR shops, nonprofits and law firms are registering as lobbyists than in previous years for fear of running afoul of the new law.
The legislation — which went into effect on Jan. 1 — broadens the definition of lobbying to include many who never considered themselves members of the trade.
Under the old law, only people with direct interaction with elected officials and other government staffers were considered lobbyists and therefore were required to register as such.
The new law, however, includes strategy, planning and research under the definition of lobbying, if that work is going to be used to influence legislation. The law also says that anyone who spends 25 hours or more on lobbying (a lower threshold than the previous 50 hours), and makes more than $2,500 on lobbying during a six-month period must register as a lobbyist. A person also must have direct contact with a government staffer during that six-month period.
Critics say those criteria are too broad and muddy the waters in terms of exactly who needs to register as a lobbyist. After all, the average lawyer or politically active CEO could easily log in the billable hours and time for what used to be considered minimal lobbying activity at events like chamber breakfasts or advising nonprofits.
The legislation has sent plenty of professionals who have never before been registered as lobbyists scrambling to comply with the law.
The impetus for the law stems from a slew of recent ethics scandals from Dianne Wilkerson’s on-camera bra stuffing incident — an alleged bribe-taking — to former speaker of the house Salvatore DiMasi’s federal indictment.
The new law was set forth in a statement from Gov. Deval Patrick’s office in June (although the law only just went into effect). It was written by the governor’s 13-member bipartisan Task Force on Public Integrity, which at the time was headed by attorney Ben Clements, who is now in private practice in Boston.
The June statement noted that the law “delivers on promises made by the governor to restore public trust in government by bringing real reform to Beacon Hill. A series of troubling charges have shaken the confidence of our citizens in state government. This law demonstrates our firm commitment to governing with integrity, with openness and with the public’s interest foremost.”
But some are questioning whether the reform effort will improve the political climate on Beacon Hill.
“We’ve made our concern pretty clear, namely that (the new law) will have a chilling affect on participation by our members in the legislative process,” said Eileen McAnneny, senior vice president of government affairs at the Associated Industries of Massachusetts. “The law is not crystal clear and that’s a huge concern.”
Penalties for violating the law have gotten stiffer, including fines of up to $10,000 and up to five years in jail.
“Arguably it makes things worse,” said Dan Haley, an associate in the regulation and government affairs department at the law firm McDermott Will & Emery LLP in Boston.
“It captures the behaviors of potentially thousands of people who have no thought of breaking the law but could find themselves violating the law simply by engaging in public life in some limited way,” he said.
Many professionals are ponying up the $100 individual or $1,000 firm fee to register as a lobbyist just to ensure they’re not breaking the law.
One seasoned lobbyist who did not want to be named, is not a fan of the new law.
“It’s just the screwiest thing in the world,” said the lobbyist. “This takes transparency and make it opaque because it confuses people. We put out a law that no one has vetted in the common-sense category.”
Larry DiCara, a government relations and public policy partner at the law firm Nixon Peabody LLP, is also a recently registered lobbyist because he currently has business before a state agency. DiCara also finds the law a bit murky.
The new law “is clear as the proverbial chocolate soda. We’ve been very cautious as to how we’ve interpreted it,” said DiCara. “I don’t consider myself a lobbyist, but I have one matter before a state agency that requires a major decision on the part of the state agency that will dramatically impact a client of the firm. I feel it’s safer to register than to not register.”
DiCara, who has done pro bono work counseling nonprofits about the new law, says many nonprofits will have to pay large fees to register employees because their work with government agencies is considered lobbying under the new law.
