This report captures all reportable lobbying expenses incurred during a calendar year and is required of all employers of lobbyists registered during any portion of the preceding year, whether or not there is any reportable activity to disclose. All reportable lobbying expenditures incurred during the year are disclosed, not simply those reported by the lobbyist(s). All expenditures reported by the lobbyist on monthly reports are disclosed as a lump sum. Any expenditures not reported by the lobbyist are itemized. Take care not to duplicate expenditures.
File a "zero" L-3 report if no lobbying compensation and other reportable lobbying expenditures were paid or incurred during the year and the registration was in effect.
Include expenses that were incurred or earned, regardless of whether they have been paid.
For each, in Column 1, show the amount incurred (what was paid and may be owing) during the year for lobbying-related compensation. Show other reportable lobbying expenditures made to or through the lobbyist in Column 2
Expenditures exempt from reporting:
When completing reports, neither the lobbyist nor the employer should include any of these expenses that are exempt expenses.
In Column 1, do include amounts paid or due the lobbyist for compensation, salary, retainer, and contract payments for lobbying (as opposed to payments for consulting, management or other non-lobbying services the lobbyist may have performed). Include any funds set aside for deferred income, bonuses or the value of similar deferred payments paid or due. If the lobbyist is a regular employee of the employer, it is not necessary to compute and report ordinary fringe benefits. If the person lobbied only part-time, compute the portion of the salary, retainer or other accrued compensation that represents the time spent lobbying.
In Column 2, include amounts paid or due the lobbyist for: reportable personal expenses; entertainment, gifts and travel for legislators, state officials and employees and their families; contributions to elected officials, candidates and political committees that were transmitted or delivered by the lobbyist; advertising, printing, and other informational literature; and other reportable expenses paid to or through the lobbyist in support of your lobbying objectives.
The total amount you disclose for each lobbyist in Item 2 should closely approximate the total amount reported by the lobbyist as having been earned, received or due from you, assuming each of you is accurately disclosing only reportable compensation and expenditures. It must also be noted, however, that the figures you report should not be a recapitulation of what the lobbyist reported; your records must support the amounts shown on your report.
3.a. What, if any, expenses did you pay directly to others on behalf of your registered lobbyist(s) that have not already been reported by the lobbyist and accounted for in Item 2? Did your lobbyist(s) charge reportable travel expenses on your organization's credit card? Include on line 3a any reportable lobbying expenses incurred during the reporting period that were paid directly to the vendor and that are not already reflected in the total amount shown for the lobbyist in Item 2.
3.b. Show the total expenses (for compensation and other lobbying related costs) you incurred to obtain the services of independent, "outside" expert witnesses or others retained to provide lobbying assistance who were not required to register as lobbyists, perhaps because they lobbied less than four days in a three-month period or lobbied only at public hearings. You do not need to report the costs associated with utilizing the services of your regular employees if they served as casual lobbyists or otherwise were exempt from registering.
3.c. If you made expenditures -- in addition to what was spent through your lobbyist and reported in Item 2 -- to provide legislators, state officials, state employees, and members of their immediate families with entertainment, tickets, passes, travel expenses (e.g., transportation, meals, lodging, etc.) or enrollment or course fees you report that total amount on line 3c. In addition, itemize each expense or occasion in Item 9 on the reverse of the form.
Promotional gifts to legislators and other officials such as desk calendars, pens, golf balls, memo books, etc, would be incorporated in the amount reported on line 3c, unless the cost of such items is already included in Item 2. Any item that is provided to a legislator, state official or employee for lobbying purposes is reportable.
Keep in mind that nothing in the disclosure law authorizes a lobbyist or lobbyist employer to provide an item to an official or employee in violation of the state Ethics Law, RCW 42.52. Questions regarding the permissibility of "gifts" should be directed to either the Legislative Ethics Board (360/786-7540), the Executive Ethics Board (360/664-0871), or the Judicial Conduct Commission (360/753-4585).
3.d. If you made expenditures -- in addition to what was spent through your lobbyist and reported in Item 2 -- for the composition, design, production and distribution of informational materials (audio, visual or print) produced primarily for lobbying purposes, disclose that total figure on line 3d. Do not include the costs associated with the production of materials designed primarily for another purpose, but used incidentally for lobbying (e.g., an employer's annual report or a legally mandated environmental impact statement distributed to legislators).
3.e. Report any expenses incurred during the reporting period -- and not included in Item 2 above -- for advertising or other communications with the general public and your customers and clients in order to further your lobbying effort.
If the lobbyist employer is a membership organization, you need not include the costs of communicating with your members; similarly corporations are not required to report communications with their stockholders or management staff. Nor do lobbyist employers need to include the costs of communicating with the public or their customers and clients regarding an action already taken by the legislature or a state agency unless the employer is advocating a change to that action.
Employers will, however, show on the L-3 any amounts already reported during the year on an L-6, a grass roots lobbying report, including any expenses related to conducting a grass roots lobbying campaign with respect to an initiative to the legislature. Also note that an advertisement in a candidate or political committee publication is reported as a campaign contribution rather than advertising.
Be aware that "advertising" includes the preparation, printing or manufacture and distribution or dissemination of printed material, broadcasts, and promotional material that is clearly of an advertising nature and has a separate identifiable cost related to a lobbying effort.
(Note that while a lobbyist employer is required to report on the L-3 only contributions to state candidates and committees supporting and opposing them and committees supporting state ballot propositions, L-3c reports must also disclose contributions to state and local officials, candidates for state and local office, public agency employees and any political committee.)
Each contribution exceeding $25 included in the total on line 4a must be itemized on line 10.
Reportable employer contributions include:
The term "candidate for state office" includes a candidate for governor, lieutenant governor, secretary of state, attorney general, state auditor, state treasurer, superintendent of public instruction, commissioner of public lands, insurance commissioner, state senator, and state representative.
"State ballot proposition" means any initiative to the people, recall of a state elected official, referendum or other measure to be submitted to the voters of the entire state. Any ballot measure required to be filed with the Secretary of State and voted on by all voters of the state is a state ballot proposition.
Contributions made by a political committee associated, affiliated or closely connected with the employer are not reported on the L-3, but rather are shown on the PAC's campaign disclosure reports. If the employer has an affiliated PAC that made contributions, simply identify the PAC in the space provided on line 4a.
(Note that lobbyists who deliver or transmit contributions from any source, including an employer affiliated political committee, must itemize those contributions on his or her L-2 report.)
A PAC is connected, related to, or closely affiliated with a lobbyist employer if the employer provides a substantial portion of the funds used by the PAC, provides funds or personnel to establish, direct or administer the committee; assists in the solicitation and collection of contributions from PAC members; has as members of the PAC primarily employees, stockholders or members of the firm, association, union or organization; employs or controls activities of the PAC officers or directors; or similarly exercises control over the contributions received and expenditures made by the PAC.
If an employer merely belongs to an association, union or organization that has a PAC, and the employer makes contributions to that PAC, these facts alone do not make that PAC connected, related or closely affiliated with the employer.
Reportable independent expenditures are payments for political advertising costing more than $950 in the aggregate that supports or opposes a state office candidate or a statewide ballot measure. Itemize each independent expenditure in Item 11.