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Corporate Lobbying: Federal and State Regulation (No. 25-3rd)

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Corporate Practice Series Portfolio No. 25-3rd, Corporate Lobbying: Federal and State Regulation, outlines and analyzes the regulation of lobbying and lobbyists at the federal and state levels. At the federal level, the portfolio devotes considerable attention to the provisions and requirements of the Lobbying Disclosure Act of 1995, which greatly expanded the scope of federal lobbying registration and disclosure. The provisions of the tax code that apply to lobbying—particularly those that limit the deductibility of lobbying expenses—are also discussed at length. In addition, the portfolio addresses a number of other federal statutes and rules that affect corporate lobbyists, including the Honest Leadership and Open Government Act of 2007, Foreign Agents Registration Act, the Byrd Amendment, congressional and executive branch gift rules, post-employment restrictions, and the Noerr-Pennington doctrine. Finally, the portfolio considers the myriad of state lobbying laws. Although every state has enacted laws governing lobbying, the scope of regulated activity varies widely. For this reason, the portfolio treats state regulation more generally, highlighting trends and common approaches to the regulation of state lobbying.

Portfolio 25-3rd: Corporate Lobbying: Federal and State Regulation

I. Overview 
    A. Role of Corporate Lobbying 
    B. Federal and State Regulation of Lobbying and Lobbyists

II. Background: Federal Regulation of Lobbying 
    A. Introduction 
    B. Regulation of Lobbying Prior to the LDA 
        1. Federal Regulation of Lobbying Act of 1946 
        2. United States v. Harriss 
        3. Compliance under the 1946 Act 

    C. Reforming Lobbying Disclosure: A Brief Legislative History of the LDA 
    D. The Honest Leadership and Open Government Act of 2007 
    E. Obama Administration Policies on Lobbying

III. The Lobbying Disclosure Act of 1995 
    A. Provisions of the LDA 
        1. Key definitions 
            a. `Lobbying contact' 
            b. ‘Covered officials' 
            c. `Lobbying activities' 
        2. Registration under the LDA 
            a. In general 
            b. Completing the registration form 
        3. Quarterly reports of lobbying activities 
        4. Updating a registration 
        5. Semiannual reports of political activities 
        6. Electronic filing, disclosure, and document retention 
        7. Intersection with the congressional gift and travel rules 
        8. Penalties and enforcement 
    B. Compliance with the LDA

IV. Tax Aspects of Lobbying Activities 
    A. Introduction 
    B. Section 162(e): An Historical Perspective 
        1. Tax treatment of lobbying expenditures prior to 1962 
        2. Section 162(e) as enacted in 1962 
    C. Nondeductibility of Lobbying Expenses: The Current Version of §162(e) 
        1. ‘Influencing legislation' 
            a. Definitions 
            b. `For a purpose of making or supporting a lobbying communication' 
            c. Support activities 
        2. Political campaigns 
        3. Grass-roots lobbying 
        4. Direct communication with a `covered executive branch official' 
            a. `Covered executive branch officials' 
            b. `Direct' communication 
            c. Relationship to other provisions 
        5. Anti-avoidance rules 
    D. Allocation of Expenses to Nondeductible and Deductible Activities 
        1. Definitions 
        2. The ratio method 
        3. The gross-up method 
        4. A method applying principles of §263A 
    E. Exceptions to Nondeductibility 
        1. Local legislation 
        2. Exception for professional lobbyists 
        3. The de minimis exception 
    F. Tax Exempt Organizations 
        1. Organizations other than §501(c)(3) organizations 
            a. Allocation of expenses 
            b. Dues paid to a tax exempt organization 
        2. Section 501(c)(3) organizations

V. Other Federal Statutes, Rules, and Regulations Affecting Those Who Lobby 
    A. Foreign Agents Registration Act 
        1. Who must register 
        2. Registrable activities 
        3. Exemptions from registration 
        4. Registration requirements and penalties 
    B. Additional Statutory and Administrative Requirements on Lobbying 
        1. Byrd Amendment 
        2. Federal Acquisition Regulation 
        3. The Federal Energy Regulatory Commission, Federal Communications Commission, and Rural Utilities Service accounting rules 
        4. Obama Administration rules affecting lobbyists 
    C. Federal Gift Rules 
        1. Executive branch gift rules 
        2. Congressional gift rules 
    D. Post-Employment Restrictions: Lobbying by Former Government Officials 
        1. Legislative branch officials 
        2. Executive branch officials 
    E. Campaign Contributions ‘Bundled' by Lobbyists 
    F. Lobbying and the Antitrust Laws 151 
        1. Introduction 
        2. The Noerr-Pennington doctrine 
            a. The Noerr decision 
            b. The Pennington decision 
        3. Exceptions to the Noerr-Pennington doctrine 
            a. The sham exception 
                (1). California Motor Transport Co. 
                (2). Indian Head 
                (3). Omni Outdoor Advertising 
                (4). Professional Real Estate Investors 
            b. The commercial activity exception 
            c. The apolitical exception

VI. State Lobbying Regulation 
    A. Lobbying at the State Level 
    B. State Laws Governing Lobbying Activities 
        1. Registration and reporting requirements 
            a. Definitions 
            b. Exemptions 
            c. Filing requirements 
        2. Prohibited acts 
        3. Administration and enforcement 
        4. Recent trends in state lobbying and other related laws 
            a. Recently revised lobbying statutes 
            b. Expanded gift limits and disclosure requirements 
            c. Rules affecting government contractors 
        5. Enforcement of lobbying laws 
        6. Local lobbying regulation 
    C. Judicial Decisions Affecting Lobbying and Other Requirements at the State Level

Portfolio 25-3rd: Corporate Lobbying: Federal and State Regulation

Wks. 1 Lobbying Disclosure Act of 1995, as Amended

Wks. 1A Honest Leadership and Open Government Act of 2007

Wks. 1B Excerpts from the Report of the House Committee on the Judiciary Concerning the Lobbying Disclosure Act of 1995 (H.R. Rep. No. 104-339, pt. 1, 1995)

Wks. 1C Excerpts from the Report of the Senate Committee on Governmental Affairs Concerning Technical Corrections to the Lobbying Disclosure Act of 1995 (S. Rep. No. 105-147, 1997)

Wks. 1D Honest Leadership and Open Government Act of 2007 Section by Section Analysis and Legislative History

Wks. 2 Lobbying Disclosure Act Guidance (effective Jan. 1, 2008; revised June 15, 2010)

Wks. 3 Lobbying Registration Form (Form LD-1); Lobbying Issue Codes (as of March 2010)

Wks. 4 Quarterly Lobbying Report Form (Form LD-2)

Wks. 5 Sample Semiannual Lobbying Contribution Report Form (Form LD-203)

Wks. 6 Covered Executive Branch Officials Under The Lobbying Disclosure Act of 1995 *

Wks. 6A Government Accountability Office: Lobbying Disclosure: Observations on Lobbyists' Compliance with New Disclosure Requirements (September 2008)

Wks. 6B Government Accountability Office: 2009 Lobbying Disclosure: Observations on Lobbyists' Compliance with Disclosure Requirements (April 2009)

Wks. 6C Government Accountability Office: 2009 Lobbying Disclosure: Observations on Lobbyists' Compliance with Disclosure Requirements (April 2010)

Wks. 6D Federal Lobbying: Differences in Lobbying Definitions and Their Impact Letter Report, 4/15/99, GAO/GGD-99-38 Appendices I and II *

Wks. 7 Internal Revenue Code §§162(a) (Trade or Business Expenses—In General) and 162(e) (Denial of Deduction for Certain Lobbying and Political Expenditures)

Wks. 8 Internal Revenue Code § 4911 (Tax on Excess Expenditures to Influence Legislation)

Wks. 9 Internal Revenue Code § 6033(e) (Returns by Exempt Organizations: Special Rules Relating to Lobbying Activities)

Wks. 10 Treas. Reg. § 1.162-20 (Expenditures Attributable to Lobbying, Political Campaigns, Attempts to Influence Legislation, etc., and Certain Advertising)

Wks. 11 Treas. Reg. § 1.162-28 (Allocation of Costs to Lobbying Activities)

Wks. 12 Treas. Reg. § 1.162-29 (Influencing Legislation)

Wks. 13 Foreign Agents Registration Act (22 U.S.C. §§611–621)

Wks. 13A Foreign Agents Registration Act Forms

Wks. 14 31 U.S.C. § 1352 (Limitation on Use of Appropriated Funds to Influence Certain Federal Contracting and Financial Transactions)

Wks. 14A Governmentwide Guidance for New Restrictions on Lobbying (1989)

Wks. 15 Form SF-LLL, Disclosure of Lobbying Activities (pursuant to 31 U.S.C. §1352)

Wks. 16 Executive Order No. 13,490 (Jan. 21, 2009)

Wks. 17 U.S. Office of Government Ethics: Lobbyist Gift Ban Guidance (Feb. 11, 2009)

Wks. 17A U.S. Office of Government Ethics: Ethics Pledge: Revolving Door Ban—All Appointees Entering Government (March 26, 2009)

Wks. 17B U.S. Office of Government Ethics: Post-Employment Under the Ethics Pledge: FAQs (Feb. 22, 2009)

Wks. 18 Standards of Ethical Conduct for Employees of the Executive Branch (5 C.F.R. §§2635.201–.205)

Wks. 19 U.S. Office of Government Ethics: Gifts from Outside Sources (June 1998)

Wks. 20 Updated Guidance Regarding Communications with Registered Lobbyists About Recovery Act Funds (July 24, 2009)

Wks. 20A Communications with Registered Lobbyists and Other Persons About Emergency Economic Stabilization Act Funds

Wks. 21 Presidential Memorandum: Lobbyists on Agency Boards and Commissions (June 18, 2010)

Wks. 22 18 U.S.C. §207 (Restrictions on Former Officers, Employees, and Elected Officials of the Executive and Legislative Branches)

Wks. 23 U.S. Office of Government Ethics: “Rules for the Road” (Oct. 2007)

Wks. 24 Senate Gift Rule: Rule XXXV of the Standing Rules of the Senate

Wks. 25 Senate Post-Employment Rule: Rule XXXVII (8)–(10) of the Standing Rules of the Senate

Wks. 26 House Gift Rule: Rule XXV, Clause 5 of the Rules of the House of Representatives (111th Congress)

Wks. 27 State Lobbying Disclosure Statutes

Wks. 28 State Offices with Jurisdiction Over Lobbying Laws
William H. Minor
DLA Piper US LLP
Washington, D.C.