Compliance
Contributions to Inaugural Committees: What You Should Know
December 19, 2024 | Bradley Coffey
November 5, 2024 | Nicole Galloway, Denisse Girón, Karen Kulivan
Key Takeaways:
Requirements for reporting lobbying activity vary widely across different jurisdictions. In one state or locality you may be well under the registration threshold. At the same time, in another jurisdiction you may have to register and report for seemingly innocuous activity such as tagging a legislator on social media.
In some jurisdictions, these varying rules and regulations can also apply to volunteer lobbyists. Volunteer lobbyists are individuals who are not paid and may not have a formal contract for the lobbying work they perform. Typically, they work with nonprofit organizations or business associations on a range of tasks from research, to organizing campaigns, calling legislators, or attending lobby days. Despite not being compensated for their work, a volunteer lobbyist’s work is still valuable to a group’s overall lobbying efforts. In light of that, a handful of jurisdictions have included volunteers in their regulations and require them to register and report their activity.
Seven states require volunteers to register as lobbyists without meeting any requirements. For example, in New Mexico, volunteer lobbyists - just like compensated lobbyists - have to register before beginning any lobbying activities. So before meeting with a legislator, a volunteer must file a Lobbyist Registration Form and pay a $50 fee per organization that they are lobbying on behalf of. Additionally, the volunteer’s organization has to submit a form authorizing the lobbyist to lobby on its behalf. Nebraska is another state that requires volunteers to register prior to any lobbying activity by filing an Application for Registration with the Clerk of the Legislature. And while volunteer lobbyists in the Cornhusker State have to pay a registration fee, they’ll owe a reduced fee of $15 compared to the $200 that compensated lobbyists are required to pay.
If you are a volunteer lobbyist and have determined where you need to register, you may wonder what’s required of you beyond registration. Here are a few examples:
In New Mexico, lobbyists are typically required to file three expenditure reports annually in addition to filing within 48 hours after making or incurring an individual expenditure of $500 or more. These reports must detail cumulative expenditures, itemized expenditures, special events, and political contributions. Luckily, there’s an exception for non-compensated lobbyists, so your team might be in the clear in regards to reporting. Although they still have to register, if a volunteer does not incur expenditures or make political contributions, they are not required to file a report.
Nebraska law also loosens some requirements for volunteers. Volunteer lobbyists can seek exemptions from quarterly reports if they do not make any expenditures by filing a Statement of Exemption. They do have to file Statements of Activity within 45 days following each legislative session, but these reports are relatively straightforward, only requiring the identification of the bills lobbied for or against and the lobbyist’s position.
Even if you don’t have volunteers working in any of the seven states requiring registration, there are 11 other states in which volunteer lobbyists must pay close attention. These states only require volunteers to register and report if certain conditions are met. Many have a dollar amount reimbursement threshold. For example, in New Jersey a volunteer who is reimbursed for more than $100 in a three month period for expenses related to their lobbying activity will need to register before communicating with or providing a benefit to a public official or within 30 days of their retention as a lobbyist. Nonprofit organizations take note: the $575 registration fee does not apply to volunteers lobbying for nonprofits.
Volunteer lobbyists who meet the threshold for registration in these 11 states face various filing requirements. In New Jersey, volunteers must file quarterly reports describing their lobbying activity just like compensated lobbyists. Both volunteer lobbyists and the organization they represent must file annual reports that require information about compensation, political contributions, expenditures, subject matters lobbied, and more.
Finally, 32 states do not require volunteer lobbyists to register. While this means volunteers in those jurisdictions can go ahead and greet that legislator or meet with a staffer without having to worry about registering and reporting, client organizations aren’t completely off the hook. For example, although volunteer lobbyists are not required to register or report in California, an organization that retains volunteer lobbyists may still need to file quarterly reports if the organization and its lobbyists spend an aggregate amount of $5,000 or more on lobbying in a calendar quarter. This includes grassroots lobbying expenses, so payments for activities such as printing flyers urging constituents to contact their representative could trigger reporting requirements. Similarly, although volunteers do not have to register in New York, organizations utilizing volunteer lobbyists must file two bimonthly and semiannual reports that include the volunteer’s activities and expenses.
Keeping up with rules, deadlines, and often confusing requirements is a daunting prospect for teams of all sizes. Let us manage your federal, state, and local registration and reporting responsibilities, or manage your Campaign Finance program. Read more about our Compliance Services here, or get in touch here.
December 19, 2024 | Bradley Coffey
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