A law firm which represents an industry association receives a fee for "legislative work" in excess of $1000 a year and the law firm further writes that it "is not in any wise an expenditure", and maintains that this fee does not fall within the provisions of the Regulations of Lobbying Act since Section 5 of the Act refers to reportable expenditures. They state that the same situation "applies to various employees..." of the association as well as its "managing director". We are advised that they "do not expend, incur, or receive in any year $1000 in reportable expenditures. A reasonable portion of the salary of each association employee who lobbies on behalf of the association is allocated to lobbying and the managing director's salary as allocated to lobbying exceeds $1000 in the calendar year."
The question presented to the Commission is whether fees paid to lawyers for lobbying activities, and that portion of salaries paid to employees of an organization and allocated to lobbying activities, constitutes reportable expenditures within the Regulation of Lobbying Act of 1977 (hereinafter referred to as the Act).
Fees paid to lawyers in connection with lobbying activities and also allocated lobbying salaries of association employees clearly fall within the purview of the Act. Section 8(b) 5(I) of the Act provides that the periodic reports shall set forth "the salary in full, or that portion attributable to lobbying activities, fees, and reimbursement of expenses paid to the lobbyist and any other expenses paid or incurred by the lobbyist for the purpose of lobbying".
Compensation paid for lobbying activities are reportable whether they be fees to a professional or non-professional person and must be reported if the lobbyist reaches the $1000 fee or salary. In the event that part of the time is spent on lobbying and part spent on other matters, the fee or salary should be apportioned and reported accordingly. Section 8(a)(1) of the Act refers to "reportable expenditures as provided in paragraph five subdivision (b) of this section...".
APPROVED BY COMMISSION: OCTOBER 6, 1978
CONCURRING: CHAIRMAN S. STANLEY KREUTZER, VICE CHAIRMAN OWEN McGIVERN, MARGARET C. ANDRONACO, D. CLINTON DOMINICK, DANIEL GUTMAN, and DAVID C. TAIT./S/