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Hired Guns

Hired guns - Initial report

By Robert Morlino, Leah Rush and Derek Willis

While lobbyists and their employers in 39 states spent more than $715 million wining, dining and generally influencing state lawmakers in 2002, many details about how those dollars were spent remain hidden from public view, according to a comprehensive analysis released today by the Center for Public Integrity.

More than half the states received a failing grade for their registration and spending disclosure requirements filed by legislative lobbyists. In fact, no state received an "A" on the Center's 48-question survey. Washington State came in at the top, garnering 87 out of a possible 100 points. Pennsylvania scored a zero because the state's court system rendered the lobby statute null and void in 2002, leaving lobbyists virtually unregulated and the public completely in the dark. 

The general lack of scrutiny comes at a time when many states are struggling with their worst fiscal crises since World War II and vested interests are expending more energy to protect their turf in the marbled halls of capitols across the country. More than 34,000 of those interests—companies, issue organizations, labor unions and others—hired a whopping 42,000 individuals to do just that, averaging almost 6 lobbyists—and almost $130,000—per legislator.

One way for the public to trace the fingerprints left on the 29,000 bills states enacted in 2002 is by looking at the disclosure reports lobbyists or their employers are required to file. These reports should show where lobby money came from, where it went, and why it was spent. They are, in short, a critical measure of external influences on both legislation and legislators. But trying to follow that trail with many states' current disclosure mechanisms is a daunting, and sometimes fruitless, challenge.

Hired Guns

Sunset in Harrisburg

By Robert Morlino

In the state where government of the people, by the people and for the people was born, the backdoor to the Capitol is wide open. Because of a recent decision by the Pennsylvania Supreme Court, there is no regulation of lobbyists in the House of Representatives. That means no registration, no reporting, and no accountability—a lobbyist could lavish a representative with expensive meals and gifts, or pass along a few tickets to the first Eagles home game played in the new Lincoln Financial Field in Philadelphia this fall, and wouldn't need to report doing so to anyone. The only remaining checks are the internal ethics rules, which place sole responsibility for reporting gifts on the legislators themselves.

In 1998, the legislature approved, and then-governor Tom Ridge signed into law, lobby disclosure regulations similar to those of other states. They were to take effect in 1999. However two lawyer/lobbyists challenged the Lobby Disclosure Act as unconstitutional, claiming that it violated attorney-client privilege by requiring them to report on their activities as lawyers. The case went to the Commonwealth Court, where judges ruled in favor of the lawyers. Pennsylvania Attorney General Mike Fisher appealed the ruling, and in October of 2002 the state Supreme Court declined to hear the case, thus eradicating all existing regulations. Not long after, the Pennsylvania Senate adopted internal lobbyist regulations but the House failed to follow suit. Ever since, it's been open season for lobbyists.

Barry Kaufman, director of Pennsylvania's Common Cause chapter, called the Commonwealth Court's ruling absurd. "[The] lawyers said they couldn't tell the difference between practicing law and lobbying. If they can't make that decision, maybe they're in the wrong profession," Kaufman said. "Lawyers all over the country seem to be able to make that distinction."

Hired Guns

How the Feds stack up

Though federal laws are often considered more stringent than state laws, this is not the case with the federal lobby disclosure law. The Center for Public Integrity survey shows that only three states—New Hampshire, Pennsylvania and Wyoming—have lobby disclosure rules that are as weak as or weaker than those applying to the hired guns registered to lobby Congress. See Federal Lobby Disclosure Report Card below.

More than 25,500 lobbyists spent at least $1.6 billion lobbying Congress in 2002, according to PoliticalMoneyLine, a Washington, D.C., research and consulting organization. That is 48 lobbyists and more than $3 million per legislator. With 4,269 bills and resolutions introduced and 241 public laws enacted last year, the power lobbyists have in helping to interpret—and thereby enact—legislation cannot be overestimated.

The Center survey included 48 questions with weighted points totaling 100. It focused on eight areas of lobby disclosure regulation: definition of lobbyist; individual registration; individual spending disclosure; employer spending disclosure; electronic filing; public access; enforcement; and revolving door provision. The federal laws received 36 points.

On the whole, federal law demands much less than state law because it lacks many basic elements that most states possess:

Hired Guns

Methodology

"Hired Guns" is an analysis of lobby disclosure laws in all 50 states. The Center for Public Integrity created a ranking system that assigns a score to each state based on a survey containing a series of questions regarding state lobby disclosure.

The questions addressed eight key areas of disclosure for state lobbyists and the organizations that put them to work:

Definition of Lobbyist Individual Registration Individual Spending Disclosure Employer Spending Disclosure Electronic Filing Public Access Enforcement Revolving Door Provision Each question had a multiple choice answer, with each answer assigned a numerical value. The answers with the highest values reward full disclosure, public access and accountability. The maximum number of points a state could receive was 100.

Center researchers developed 48 questions, and sought answers for them by studying statutes and interviewing officials in charge of lobbying agencies in each state. Most questions required the researchers to find the information in the state statute and then use public officials for confirmation.

Because only one state scored an 80 or above, scores of 70 and higher are considered relatively satisfactory. Scores of 60 to 69 are considered marginal. Scores below 60 are considered failing.

Definition of Lobbyist (7 points maximum)

1. In addition to legislative lobbyists, does the definition recognize executive branch lobbyists?

No – 0 points Yes – 3 points

Hired Guns

Study finds $565 million spent on lobbying in the states in 2000

By John Dunbar and Leah Rush

Lobbyists in 34 states spent $565 million wining, dining and influencing state legislators and members of the executive branch in 2000, according to "The Fourth Branch," a new study by the Center for Public Integrity.

The study was compiled in conjunction with the release of Capitol Offenders: How Private Interests Govern Our States, the Center's new book examining ethics in all 50 state legislatures.

The expenditure totals in "The Fourth Branch" are based on reports from 34 states. Fifteen states do not provide annual totals for lobbying expenditures, and one state, Tennessee, does not require lobbyists or their employers to report any type of expenditure.

Of the 34 states that do provide annual expenditure data for lobbyists, 11 do not require lobbyists, or their employers, to include the amount of their compensation when reporting their spending.

Thus, the $565 million figure is far lower than the actual amount of money spent on lobbying state governments.

Larry Sabato, political scientist at the University of Virginia and founder of its Center for Governmental Studies, said consulting fees charged by lobbyists are usually the bulk of a lobby shop's expenditures. "It's an impressive enough number right there," he said, even without compensation included in those 11 states. "It's a lucrative business. The fees that they pull in are just incredible."

Sabato calls state lobbying a "growth industry" due to the continuing shift of legislative responsibility from the federal government to the states that began in the 1970s.

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