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Is Your Organization Subject to the Lobbying Disclosure Act?

A. Scope and Purpose

1. The federal Lobbying Disclosure Act (LDA) does NOT limit the amount of lobbying any person or entity can engage in. It’s purpose is to provide for public disclosure of who is lobbying the federal government, on whose behalf, on what issues and at what cost.

2. The LDA became effective January 1, 1996, replacing the Federal Regulation of Lobbying Act. It is be found at 2 USC 1601 et. seq., P.L. 104-65, 109 Stat. 691

3. Information and forms are available through the Clerk of the House or Secretary of the Senate. The Internet site for Lobby Registrations, which includes forms and a copy of the “Lobbying Registration Guidance” as well as a downloadable copy of the Act is: http://clerkweb.house.gov/lrc/pd/lobby/lobby.htm.

B. Who Must Register as a Federal Lobbyist?

1.) If a nonprofit organization hires a consultant to lobby the federal government on their behalf, the consultant is responsible for registering and filing reports IF the following threshold is reached:
a.) Lobbyist makes more than one contact with a covered official on behalf of the organization and
b.) More than 20% of the lobbyist’s time is spent on lobbying activities for the organization and
c.) Lobbyist receives more than $5,000 in a six month period from the organization.
The report filed by the lobbyist will disclose the name of the organization, the issues involved and the amount spent.

2.) Organizations, including nonprofits, are required to register if one or more employees reaches the following threshold:
a.) Employee makes more than one lobbying contact and
b.) Employee spends more than 20% of his or time lobbying for client or the organization and
c.) Organization spends more than $24,500 in a six month period on lobbying by covered employee.

3.) Separate registration is required for each client of a registering nonprofit organization.

4.) NOTE: If an organization employs several people who lobby the federal government it is only required to register for employees whose expenses exceed the $20,000 limit per client (or $20,000 if all lobbying is on behalf of the organization itself). If no employee meets this threshold the organization is not required to register, even if its total expenditures exceed $20,000.

C. What is a Lobbying Contact?

1.) A lobbying contact is any oral or written communication made to a covered official on behalf of a client regarding:
a.) Federal legislation
b.) Federal rules or regulations
c.) Administration of a federal program or policy
d.) Nomination or confirmation for an appointment requiring Senate confirmation

2.) The following activities are not considered to be a lobbying contact under the LDA: (not an exhaustive list)
a.) Speeches, articles publications or other material distributed and available to the general public or through mass media
b.) Testimony before a committee, subcommittee or task force of Congress or submitted for inclusion in the public record of a Congressional hearing
c.) Written specific information provided at the request (oral or written) of a covered official.
d.) Made in response to a notice in the Federal Register or similar publication soliciting public comment directed to a designated agency official
e.) Written comments filed in the course of a public proceeding or other statements on the record at a public proceeding.
f.) Petition for agency action if in writing and a public record under agency procedures

D. Who is a Covered Official?

1.) Executive branch covered officials include the President, Vice-President, officers and employees of the Executive Office of the President, Executive Level I-V officials, “Schedule C” employees and uniformed service members at grade 0-7 or above.

2.) Legislative branch covered officials include members of Congress, their employees, employees of committees, joint committees, leadership and caucuses.

E. Where to Register

1.) Registration is required within 45 days of the time a lobbyist is first hired.
2.) Must register with Clerk of the House and Secretary of the Senate.

F. What is a Lobbying Activity?

1.) Lobbying activity includes contact with covered officials as well as preparation, planning, research and background work for such contacts if intended to support the lobbying contact. (Can includes grassroots lobbying.)

2.) If a person engages in lobbying activities without contacting a covered official, the activity does not need to be reported.

G. Alternative Definition for 501(c)(3) Organizations

1.) Originally Section 15 allowed 501(c)(3) organizations to use the IRS definition of lobbying for LDA purposes in order to avoid the need to keep two sets of books. The law was modified in 1998 to allow charities that use the expenditure test under Section 501(h) of the tax code and file Form 990 reports to:

• use the tax law definitions of lobbying in lieu of the LDA definitions for determining "contacts" and "lobbying activities."
• use the tax law definitions of lobbying to report executive branch lobbying.

The Senate Clerk's website says "Registrants should note that the tax definition of lobbying is broader with respect to the type of activities reported, while they are narrower with respect to executive branch officials contacted.

Registrants who make such an election must use the Internal Revenue Code definition for executive branch lobbying and the LDA definition for legislative branch lobbying. This may result in the registrant reporting fewer lobbying contacts with fewer executive branch officials since the IRC definitions are narrower than the LDA definitions. Also note that definitions under the tax code include "grass-roots," "state" and "local" lobbying, while the LDA excludes those types of lobbying from the definition of "lobbying activities." The LDA does not permit modification of the tax code definition to exclude such expenditures when reporting lobbying expenses."

H. Penalties for Noncompliance

1.) The Clerk of the House or Secretary of the Senate can send written notice to a lobbyist they determine is not in compliance. If no response is made within 60 days the case can be referred to the U.S. Attorney for the District of Columbia.
2.) The U.S. Attorney may seek civil penalties only (up to $50,000) for knowing violations.