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Lobbyist Gift Reform Countdown, March 9, 1994

This is a press release from the offices of Senator Lautenberg and Senator Wellstone. It is certainly not a potboiler, but it is very useful as background information for people writing newspaper editorials or making reports to groups. As always, your legislators are dying to hear from you on whether they should take those lobbyist-paid ski trips, or whether they should vote for this amendment.

SUMMARY OF THE LAUTENBERG/WELLSTONE AMENDMENT TO BAN LOBBYISTS AND OTHERS FROM PROVIDING GIFTS TO MEMBERS OF CONGRESS AND THEIR STAFFS

General Prohibition on Gifts and Other Benefits from Lobbyists

Lobbyists and their clients would be prohibited from providing (with business or personal funds) any gift or other benefit to a Member of Congress or congressional employee (including spouses and immediate family members). The ban on clients would apply to gifts paid for by organizations that hire or retain lobbyists or by top officials of such organizations. The ban would also apply to gifts given to organizations maintained or controlled by Members or staff, or given to third parties on behalf of Members, such as charitable contributions.

The Lautenberg/Wellstone amendment would also ban anyone from paying for travel-related expenditures for recreational trips, such as golf, tennis and ski trips. In addition, lobbyists would be prohibited from paying for any recreational activities or entertainment costs for Members and staff while on a permitted trip.

Gifts Required to be Disclosed

In some limited circumstances, lobbyists and their clients would be allowed to continue to provide certain financial benefits to Members and staff. However, they would have to itemize and disclose these benefits on a Member-by-Member basis.

1. Certain Permitted Travel-Related Expenditures: Lobbyists and their clients could provide travel-related expenditures in connection with meetings, speaking engagements, fact-finding trips and similar events but only if the trip was directly related to a Member or staff's official duties and if details about the trip were published in advance in the Congressional Record. Such expenditures would also have to be disclosed in the report filed by a lobbyist.

2. Gifts to Members Motivated by Personal Friendship: A lobbyist could provide a gift or other benefit to a Member on the basis of a personal friendship under certain limited circumstances. The personal friendship exemption would not apply to any gift for which the lobbyist obtains a tax deduction or reimbursement (including using an expense account of an employee or client, or charging fees to clients for the purpose of reimbursement for the purchase of gifts). However, any gifts provided to Members on the basis of the personal friendship exemption would have to be disclosed by the lobbyist.

Gifts Exempt from the Ban and Disclosure

1. Gifts to Members and staff motivated by a family relationship.
2. Gifts to staff motivated by a personal relationship as defined narrowly in the amendment.
3. Items of little intrinsic value such as a greeting card or personalized plaque, certificate or trophy.
4. Informational materials such as books and videos.
5. Modest refreshments such as coffee, soft drinks or doughnuts offered other than as part of a meal.
6. Home state products used for promotional purposes.
7. Political contributions otherwise reported to the FEC.
8. Honorary degrees.

Exemption for Food and Materials at Certain Events
Clients (but not lobbyists) could provide food and materials to Members and staff at the following types of events:
1. Broadly attended events: Conventions, conference, symposia, receptions and similar events.
2. Smaller events: Bona fide meetings of organizations, provided that the value of the food does not exceed $20.

Neither of these exemptions would apply to expenses for travel or lodging; entertainment collateral to an event; meals other than those in a group setting to which all attendees are invited; a concert, play, motion picture, sporting event or similar public entertainment event; a conference, retreat or similar event for or on behalf of Members and/or staff that is sponsored by an official congressional organization; or an event that is hosted or co-hosted with, or in honor of, a Member of Congress or staff.

Other Provisions

1. Notification to Members and staff: Lobbyists would have to notify recipients of any expenditure required to be disclosed in their lobby reports within three weeks of the expenditure. Lobbyists could not include in their report any item that has been returned within 30 days of receipt.
2. Penalties: Violators would be subject to penalties in accordance with S. 349. the Lobbying Disclosure Act, as approved by the Senate, which provides up to $200,000 for serious offenses.
3. Regulations: The President [of the Senate] or his designee would be directed to promulgate final regulations to implement the provisions no later than one year after the date of enactment.
4. Study: A study would be conducted after 18 months to evaluate the amendment and to identify any significant problems which may have arisen in its implementation. The study could also include recommendations for statutory changes.
5. Effective Date: The amendment would be effective one year after the date of enactment.
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The Lobbyist Gift Reform Countdown wishes to make the following public service announcement. We are not part of the following organization, but we gratefully support its efforts.

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