1. Lobbying Ethics and Reporting Rules
For Federal Lobbying v

2. Contents What constitutes lobbying activity?
LDA Reporting Requirements
Campaign Finance Rules
“Revolving Door” Rules

3. Contents What constitutes lobbying activity?
LDA Reporting Requirements
Campaign Finance Rules
“Revolving Door” Rules

4. Lobbying Activity What constitutes lobbying activity?
Two or more lobbying contacts
Communicates with those contacts to influence decision-making on a federal issue
20% of individual’s time is lobbying over a three- month period
Covered employees for lobbying contacts include:
Members of Congress
Employees of Congress
POTUS, VPOTUS
Executive Office of the President
SES I-V
Schedule C Employees
Military O-7 or above

5. Lobbying Activity Federal issues include:
Legislative proposals
Rules
Regulations
Nominations
Executive Orders
Programs
Policies
Contracts
Grants
Loans
Permits
Licenses
Covered activity includes both:
Direct contact with covered officials
AND
planning, research, background work, coordination with or for lobbying activities

6. Lobbying Activity Gift Rules – General Principles
Never offer anything of value to government official connected with performance in official role
Bribery, rewards, gratuities are illegal.
Officials may not “solicit” gifts.
Lobbyists are independently liable for violations.

7. Lobbying Activity Gift Rules - Political Appointees
Includes full-time non-career appointees, non-career SES and Schedule C employees
Prohibited from accepting gifts from any registered lobbyists (independent of activity related to agency), includes:
Lobbying firms
Firms employing in-house lobbyists
Non-lobbyist employees of registered lobbyists or organizations
DOES NOT include organizations that retain outside lobbyists or lobbying firms, but do not file their own LDA registration

8. Lobbying Activity Gift Rules - Political Appointees (cont.)
Exceptions:
Modest food/refreshments other than as part of meal
Items of little intrinsic value, solely for presentation
Gifts based on personal relationship
Gifts to POTUS or VPOTUS

9. Lobbying Activity Gift Rules - Other Executive Branch Employees
NO GIFTS unless an exception applies
Prohibited sources include any persons who…
Seek official action by employee’s agency
Conducts or seeks business with agency
Conducts activities regulated by agency
Hold interests substantially affected by performance of employee’s official duties

10. Lobbying Activity
Gift Rules - Other Executive Branch Employees (cont.)
Exceptions:
Gifts of $20 or less per source per occasion, no more than $50 per year total per individual
Modest food and refreshments other than as part of a meal
Gifts based on personal relationship
Speaking engagements
Widely attended gathering
Employee must first obtain agency determination that attendance is in interests of agency
Diversity of views represented, or range of persons interested in specific matter are present
Free attendance for employee is allowable if >100 people expected and market value is <$335
Items of little intrinsic value, solely for presentation

11. Lobbying Activity Congress Gift Rules: Travel Restrictions
Lobbyists are prohibited from:
Planning, organizing, requesting, or arranging a trip for a Member or staff
Follow up with Members or staff after invite is sent
Accompany Members or staff on trip
If travel is paid for by entity that employs/retains lobbyists, may last only one day and one night, with exceptions for universities in the House and 501c(3)s in the Senate
Paperwork Requirements:
Private sponsor must submit certification forms to Members/staff invited on trip
Staff must then submit paperwork to Ethics Committee of appropriate chamber, at least 15 days prior to travel for House and 30 days for Senate

12. Lobbying Activity Congress Gift Rules: Non-Travel Gifts
$0 limit (includes in-kind) for registered lobbyists or entities that employ/retain registered lobbyists
Source of gift is the organization with which the paying individual is affiliated:
Any entity other than client that contributes in excess of $5000 to registrant’s lobbying activities per quarter
Actively participates in planning, supervision, or control of lobbying
Associations/coalitions are the source, not individual members of association. Should disclose members during registration.

13. Lobbying Activity Congress Gift Rules: Non-Travel Gifts (cont.)
Covered Exceptions
Personal friendship
Historical relationship?
Gift giver offering similar gifts to others?
Gift submitted for reimbursement or as a business expense?
Relative of covered official
Immediate family (includes step or half siblings and in-laws)
First cousins, (great) aunt/uncle, niece/nephew
Grandparents, grandchildren (including those of spouse)
Receptions with food other than as part of meal
Cannot be 1-on-1
Standing up not sitting down
Courtesy food at meetings (e.g. coffee, juice, donuts, bagels)

14. Lobbying Activity Congress Gift Rules: Non-Travel Gifts (cont.)
Covered Exceptions (cont.)
Widely Attended Events
Related to official duties
Over 25 non-Congressional attendees
Open to industry/profession, with invitation from sponsor
Free attendance for official includes waiver of conference fee, local transportation, sit-down meal costs
Charitable Fundraising
Unsolicited invitation from fundraiser organizer
True charitable purpose
Reimbursement for travel by charity acceptable for event
Site Visits (House Only)
Food and refreshments offered by site management only if on business’s premises, in a group setting with employees of site, part of official travel, NOT at Washington- area office of lobbying/law firm
Local transportation acceptable if not within 35-mile radius of district office or Washington DC

15. Lobbying Activity Congress Gift Rules: Non-Travel Gifts (cont.)
Covered Exceptions (cont.)
Constituent Events (Senate Only)
Free attendance in home state, only if:
Cost of meal <$50
Event sponsored by constituent
>4 constituents attend
Speaking role relevant to official position
No lobbyists attend
Personal Hospitality
Meal/lodging for non-business purpose
In residence owned by host
Cannot discuss pending legislation
Hospitality cannot be provided by individual lobbyist
Items of little intrinsic value, must be <$10 in actual value

16. Lobbying Activity Congress Gift Rules: Non-Travel Gifts (cont.)
Covered Exceptions (cont.)
Government Expenses
Paid for by federal, state, or local government
Secured by government under a government contract
Training
Free, and “in the interest of” House or Senate
Food/refreshments permitted if an integral part of training
Senate: >24 staff and participation of >1 Senate office
No private subsidies of official activity
Others:
Bona fide awards and prizes
Gifts based on spouse or outside activities
Honorary degrees
Widely available benefits
Home state products
Political campaign contributions
ANY EXEMPTED GIFT OVER $250 MUST BE APPROVED IN ADVANCE BY ETHICS COMMITTEE (H OR S)

17. Lobbying Activity Congress Gift Rules: Non-Travel Gifts (cont.)
Covered Exceptions (cont.)
Government Expenses
Paid for by federal, state, or local government
Secured by government under a government contract
Training
Free, and “in the interest of” House or Senate
Food/refreshments permitted if an integral part of training
Senate: >24 staff and participation of >1 Senate office
No private subsidies of official activity
Others:
Bona fide awards and prizes
Gifts based on spouse or outside activities
Honorary degrees
Widely available benefits
Home state products
Political campaign contributions
ANY EXEMPTED GIFT OVER $250 MUST BE APPROVED IN ADVANCE BY ETHICS COMMITTEE (H OR S)

18. Contents What constitutes lobbying activity?
LDA Reporting Requirements
Campaign Finance Rules
“Revolving Door” Rules

19. LDA Reporting Requirements
Everything is electronic. See the House Clerk website for further details.
For LDA Reporting Requirements, it is a crime to knowingly and willfully:
Falsify, conceal or cover up a material fact via trick/scheme/device
Make any materially false, fictitious or fraudulent statement or representation, OR
Make or use any false writing or documents knowing it to contain the above.
See §15 of the LDA for specific instructions for entities required to report lobbying expenditures under §6033(b)(8) or §162(e) of the IRC

20. LDA Reporting Requirements
Registration Requirements
Firms file separate registration for each client
Not for <$3,000 clients during a quarterly period
Not for pro bono clients
Companies employing in-house lobbyists file a single registration, but not if expenses <$11,500 on lobbying per quarter
Required within 45 days of any lobbying activity

21. LDA Reporting Requirements
Registration Requirements (cont.)
Information required during registration:
Client and information on client
% ownership in client by a foreign entity that
Holds 20% equitable ownership in client or any affiliate of client
Directly or indirectly, in whole or major part, plans, supervises, controls, directs, finances, or subsidizes the activities of the client or affiliate
OR is an affiliate of either the client or an organization affiliated with the client and has a direct interest in outcome of lobbying
General subject of lobbying activity
Employees involved in lobbying
Any employee who has served as a covered Executive or Legislative Branch official within the last 20 years

22. LDA Reporting Requirements
Quarterly Filings
Must disclose:
specific issues/legislation
Agencies or house of Congress contacted per client
Employees who acted as lobbyists for client
Foreign entities involved
Total income, rounded to nearest $10,000 per client (separate rules for contingency fees)
Any previous service as a covered official of a lobbyist new to client
If a previously registered client has transitioned to pro bono, must continue registering quarterly.

23. LDA Reporting Requirements
Semiannual Filings
Form LD-203 must be completed semiannually (Jan./Jul. 30th) by BOTH firms and lobbyists.
Must disclose:
Political committees established or controlled by firm
Political contributions >$200 to federal candidates, leadership PACs, parties
Payments made to events honoring covered officials
Payments to entities in recognition of covered officials
Contributions to entities controlled by covered or designated officials
Contributions to conferences, retreats, meetings held by covered officials or on their behalf
Certification that the firm (and each lobbyist) has read and is familiar with Congressional gift and travel rules, AND has not provided, requested, or directed a gift (incl. travel) to a Member or staff with knowledge that the gift would violate those rules.

24. LDA Reporting Requirements
Termination Reports
Lobbyist Termination
If a registrant reasonably expects an individual to meet definition of lobbyist in next quarterly period, lobbyist should remain “active”
If not, then registrant can remove that lobbyist using line 23 of Form LD-2
Client Termination
Registrant may terminate registration for a particular client when it is no longer employed/retained AND anticipates no further lobbying activities on client’s behalf
Companies employing in-house counsel may terminate registration when in-house lobbying has ceased and is not expected to resume
Form LD-2, check the “Termination Report” box and supply:
Date of termination
Lobbying income/expenses in the period up to and including that date

25. Contents What constitutes lobbying activity?
LDA Reporting Requirements
Campaign Finance Rules
“Revolving Door” Rules

26. Campaign Finance Rules
Generic Rules to Follow
Work with private campaign staff, not public official’s legislative (or executive branch) employees
Schedule fundraising (and give support) without regard to the legislative calendar, or personal legislative requests.
Invite a broad audience to any event, and avoid any special access to the Member on policy or legislative matters.
501c(3) Non-Profits CANNOT CONTRIBUTE

27. Campaign Finance Rules
2012 Contribution Limits
Total Biennial Limit - $117,000 Overall
$46,200 to candidates
$70,800 to all PACs and party committees
$46,200 to local PACs and party committees
Specific Yearly Limits
$2500 per election to each candidate
$30,800 per year to national parties
$10,000 per year to state, district, and local party committees
$5000 per year to any other PAC

28. Campaign Finance Rules
Groups without Contribution Limits
Super PACs
Required to register and report with FEC
Only authorized to make independent expenditures not authorized by candidate
Can solicit unlimited contributions from individuals, political committees, corporations, and unions
May not make direct monetary or in-kind contributions to federal candidates or committees
527 Groups

29. Campaign Finance Rules
Corporate Contribution Rules
Corporations cannot:
Make direct contributions to federal candidates and/or committees
“Facilitate” donations by employees
Reimburse employees for contributions
Direct employees to participate in fundraising
Punish employees for declining to participate in fundraising

30. Campaign Finance Rules
Corporate Contribution Rules (cont.)
Any resources used for political fundraising/activity must be paid for in advance, including employee time, membership lists, office space, catering
Citizens United v. FEC
Corporations and unions may make unlimited independent expenditures on television and radio advertising affecting federal elections
Does not change direct contribution restriction

31. Campaign Finance Rules
Bundled Contribution Rules
Refers to contributions forward or credited by a lobbyist, registrant, or lobbyist/registrant PAC.
DOES NOT include personal contributions of these parties.
Disclosure Requirements
Candidates, leadership PACs, and party committees must disclose bundled contributions from these parties.
Threshold for disclosure is when aggregate bundled contributions exceed $16,200, calculated over quarterly period.

32. Contents What constitutes lobbying activity?
LDA Reporting Requirements
Campaign Finance Rules
“Revolving Door” Rules

33. “Revolving Door” Rules
Negotiating Future Employment Rules
Executive Branch
May incur restrictions on current duties while still in government, if seeking private employment
Recusal Test: must have direct and predictable effect on financial interests of future employer
Applies when a government worker has “begun seeking employment”, including unsolicited communications
Continues until all possibilities of employment are rejected and discussion ended, or two months post-unsolicited communication
Special rules for procurement officials.

34. “Revolving Door” Rules
Negotiating Future Employment Rules (cont.)
Senate
Senators are prohibited from negotiating jobs involving lobbying activities until after successor’s election
Exception: Senators must give the Secretary of the Senate notice within three business days of negotiating jobs which do not involve lobbying activities
Senate employees earning at least 75% of Senator’s salary must notify the Senate Ethics Committee within three business days of negotiating private sector employment
“Negotiations” occur only after offer has been made and Senator/staff is considering accepting.
Recusal requirements for all

35. “Revolving Door” Rules
Negotiating Future Employment Rules (cont.)
House
Members are prohibited from negotiating private jobs until after successor’s election, unless Member gives notice to House Ethics Committee within three business days of negotiation
House employees earning at least 75% of Member’s salary must notify the House Ethics Committee within three business days of negotiations
Negotiations occur when there is “active interest on both sides in reaching an agreement”
Recusal requirements for all

36. “Revolving Door” Rules
Restrictions on Post-Employment Activities
Executive Branch Rules
Obama-Specific Rule:
Any presidential appointee is forbidden from acting as a registered lobbyist under the LDA for the duration of the entire Obama administration.
Lifetime Ban on “Switching Sides”
Applies to every former executive branch employee
Forbidden from representing a private party before or against the federal government in relation to a “particular matter” involving “specific parties”,
IF that employee had worked on the same matter involving those parties “personally and substantially for the government previously.
Viewed as a very specific exclusionary rule, and does not refer to broad policymaking authority.

37. “Revolving Door” Rules
Restrictions on Post-Employment Activities (cont.)
Executive Branch Rules (cont.)
Two-Year Ban on “Switching Sides”
Refers to the same types of employment as the lifetime ban
BUT extends to matters merely under the “official responsibility” of the federal official while employed by government.
Does not therefore require “personal and substantial” involvement in specific matters.

38. “Revolving Door” Rules
Restrictions on Post-Employment Activities (cont.)
Executive Branch Rules (cont.)
“Senior Official” Cooling Off Period
Length: One year post-employment
Prohibited Activity: Advocacy contacts, appearances, or communications with “intent to influence”
Prohibited Content: “any matter” within jurisdiction of former agency/office, when attempting to influence
Prohibited Contacts: Individuals in former agency/office
“Senior Officials” include:
SES, paid greater than 86.5% of basic rate of pay for SES II
Military officers at O-7 or above
Certain White House staff

39. “Revolving Door” Rules
Restrictions on Post-Employment Activities (cont.)
Executive Branch Rules (cont.)
“VERY Senior Official” Cooling Off Period
Length: TWO years post-employment
Prohibited Activity: representations or advocacy contacts
Prohibited Content: “ANY matter”
Prohibited Contacts: ANY employees/officials of former agency, AND SES I-V in any department or agency of executive branch.
“Very Senior Officials” include:
SES Level I
Employees of the Executive Office of the President
Certain White House employees compensated at SES II
Special Rules for Procurement Officials

40. “Revolving Door” Rules
Restrictions on Post-Employment Activities (cont.)
Legislative Branch
Senate Rules
All former Senators are restricted from lobbying anyone in Congress or any employee of a legislative office for two years after leaving Senate
Staff earning 75% or more of a Senator’s salary (and employed for sixty or more days) are prohibited from lobbying any Senate employee/Senator for one year post-employment
All staff are prohibited from lobbying the office in which they previously were employed
Only communications with an intent to influence are barred

41. “Revolving Door” Rules
Restrictions on Post-Employment Activities (cont.)
Legislative Branch (cont.)
House Rules
Former Members are prohibited from lobbying any Member/employee of Congress for one year after leaving
Legislative Office Staff earning 75% or more of that Member’s salary (and employed for sixty or more days) are prohibited from lobbying the legislative office in which they worked for one year
Legislative Committee Staff covered by same provisions are prohibited for one year from lobbying any Member of employee of former committee, or any Member who served on committee within previous year before leaving
Legislative Leadership Staff covered by same provisions are prohibited from lobbying anyone in that leadership office
Only communications with an intent to influence are barred

42. “Revolving Door” Rules
Restrictions on Post-Employment Activities (cont.)
Joint Legislative and Executive Rules
Representations in Treaty or Trade Negotiations
Refers to former government officials/employees who…
Had personal and substantial participation in ongoing trade or treaty negotiations on behalf of the US, within last year of public employment
Had access to certain non-public information (not subject to FOIA disclosure)
Prohibited from representing, aiding or advising anyone on the basis of such non-public information concerning US trade or treaty negotiations, for one-year after leaving government
Representing Foreign Governments
Applies to:
Members of Congress and Senior Legislative Staff (75% earnings of Member)
Senior and Very Senior Executive Staff
Prohibits:
One year post-employment
Representing a foreign entity before any officers/employee of any department or agency of the US with intent to influence that official/employee in his/her official duties
Aiding or Advising a foreign entity with intent to influence a decision of any officer or employee of any department or agency of the US
Lifetime ban for US Trade Representative and his/her Deputy