This information is designed to provide the disclosure requirements and filing information that lobbyist employers need to know. The contents have been distilled from the requirements set out in RCW 42.17A and Title 390 WAC, as well as the Public Disclosure Commission's declaratory orders and interpretations. Care has been taken to make the instructions accurate and concise. Nevertheless, the instructions do not take the place of local, state, or federal laws. Please contact the Public Disclosure Commission staff if you need additional information or have questions.
In 1972, the people of Washington State declared that lobbying expenditures must be fully disclosed if secrecy in government is to be avoided and public confidence in the fairness of governmental processes is to be enhanced. Today, providing accurate and current information concerning the financing of lobbying in Washington State remains one of the primary purposes of the disclosure law.
The law provides public access to the identity of those who lobby their employers and the nature, magnitude and intensity of the lobbying effort as shown through expenditures. The focus is on money. Citizens who petition their state government -- through personal contact, telephone calls and letters -- without payment of any kind and without spending funds to benefit public officials are not subject to the law. Individuals who are paid to represent an interest are generally subject to registration and reporting. Unpaid individuals who make lobbying expenditures must register, but may not have to file monthly reports (depending on the type of expenditures they make).
For those lobbyist employers who must report, the key to complying lies in keeping detailed records of all funds spent for reportable lobbying activities, whether those funds compensate or support a lobbyist or are used for making contributions or entertaining legislators or other public officials holding state office. Employers need to have their own internal mechanisms for recording and tracking reportable lobbying expenses, and must not rely solely on their lobbyist for maintaining records that will substantiate their reports.
All lobbyist employers, whether experienced or new to the lobbying arena, are strongly encouraged to review these instructions. Accurate reporting, as demanded by the public and reaffirmed by the Legislature and the Commission, cannot occur unless those subject to the law take their reporting requirements seriously.
The person or persons by whom a lobbyist is employed and all persons by whom he or she is compensated for acting as a lobbyist. The term "person" is defined very broadly and includes an individual, partnership, corporation, government, association, political party or any committee or group. Based on these definitions, anyone who pays a lobbyist, reimburses a lobbyist for expenditures, provides funds for the lobbyist's use or furnishes other consideration to or on behalf of a lobbyist, is a lobbyist's employer. A lobbyist includes any person who lobbies either on his own or another's behalf
Attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency under the state Administrative Procedure Act, chapter 34.05 RCW.
Neither lobby nor lobbying includes an association’s or other organization’s act of communicating with the members of that association or organization.
Bills resolutions, motions, amendments, nomination, and other matters pending or proposed in either house of the state legislature, and includes any other matter that may be subject of action by either house or any committee of the legislature and all bills and resolutions that, having passed both houses, are pending approval by the governor.
Most people who are at all familiar with the disclosure law, realize that lobbying the legislature is a reportable activity. Some may not be aware that reportable lobbying also includes efforts to inform, sway, convince or other influence the action or inaction of legislative staff. Staff recommendations regarding legislation play a significant role in the legislative process. Contacts with legislative staff constitute lobbying. Gift, travel and entertainment expenditures for legislative staffers are reportable.
Lobbying state agencies is sometimes overlooked as being reportable. Many agencies have authority to set rates, establish standards to regulate industries and occupations and adopt rules that become part of the Washington Administrative Code (WAC). Attempting to influence state agencies with respect to the “legislative” functions – setting rules, rates or standards – is lobbying and must be reported.
Also see Contribution LImits
The law states that it is a violation for any person or entity to pay or agree to pay any consideration to a person for lobbying unless that person is registered as a lobbyist with PDC. [RCW 42.17A.650]
The law also imposes certain duties and responsibilities on lobbyists in addition to registering and filing accurate and timely reports of compensation and expenses. According to RCW 42.17A.655, a person required to register as a lobbyist is prohibited from:
The intent of the Public Disclosure Law cannot be satisfied unless reports are filed timely and accurately.
If the Commission finds a lobbyist or lobbyist employer in violation of the law, it could impose a penalty of up to $10,000 per violation unless the parties stipulate otherwise. In addition, the Commission could revoke or suspend a lobbyist's registration, or refer the matter to the State Attorney General for appropriate action. The civil remedies and sanctions available to the court are set out in RCW 42.17A.750.
PDC staff may contact lobbyists or lobbyist employers advising them that a report appears to be missing or incomplete, asking for clarification of a report or requesting additional information. Please cooperate with these informal contacts and supply the requested information promptly.
Each year, a limited number of lobbyists and lobbyist employers will be the subject of random audits. These audits are routine. An audit may be in-depth and the lobbyist and employer will be asked to make available all records, including receipts and other documentation.
Audits also are conducted for cause because a complaint has been received or there is reason to believe disclosure reports are not accurate. If you are the subject of such an audit, be assured you will have every opportunity to explain your position.
The Public Disclosure Commission may suspend or modify the reporting requirements of anyone subject to the Act if it decides that the law works a "manifestly unreasonable hardship" on the filer and the modification "will not frustrate the purposes" of the disclosure law.
If you believe your situation meets these two statutory tests and you can provide convincing arguments to that effect, you have the option of asking the Commission to grant a reporting modification.
To apply for a modification, submit a letter that makes clear:
Send your lobbyist employer report, as complete as possible, with your letter.
A hearing will be scheduled to consider your request. It's best if you attend the hearing, but your presence is not required
Lobbyists and their employers must preserve all accounts, bills, receipts, books, papers and other documents that substantiate their reports for five years. However, if the lobbyist is required, as part of his or her employment agreement, to turn all records over to the employer, the employer has the responsibility to preserve them for five years. [RCW 42.17A.655(1)]
Record Keeping: The financial reports required from lobbyists and employers mandate that complete, accurate and detailed records be maintained. The type of information that needs to be reported is often both greater and different from that found in most financial accounting systems or required by the Internal Revenue Service. For these reasons, a careful study should be made of the reporting requirements to ensure that the record keeping system used will enable both the lobbyist and employer to prepare and substantiate their respective expense reports.
Given the variety of lobbyists, lobbyist employers and the resources available to them, it is not feasible to suggest a uniform bookkeeping system. Lobbyists and employers must examine their own planned activities and devise a system that is compatible with their other financial accounting requirements, while still satisfying the PDC reporting requirements. Below are some hints and suggestions to assist in record keeping.
Tips for Success:
Look up contribution amounts that may be given to candidates, political party committees, and caucus campaign committees.
Each lobbyist employer has a separate contribution limit unless the employer:
Each lobbying firm is entitled to a separate limit provided it 1) does business in Washington, 2) is not affiliated with another entity, and 3) neither exerts nor receives “direction or control” with respect to a contribution subject to limits.
In addition, each lobbyist has his or her own personal contribution limit for each state office candidate, so long as the lobbyist does not exercise direction or control over someone else’s contributions. With the exception of the last three weeks before the general election, an individual lobbyist has no limit on contributions given to caucus and party committees.
Intermediary: An individual who transmits a contribution on behalf of anyone – except his or her employer, immediate family member, and/or association to which he or belongs – becomes an intermediary and must disclose to the recipient his or her full name, street address, occupation, name of employer and, if self-employed, place of business and the same information for the contributor. (For example, if a lobbyist delivers a contribution from a PAC that is not the lobbyist’s employer – even though the PAC may be affiliated with the employer – the lobbyist is an intermediary and must supply the recipient with the information noted above.)
Direction or Control of Another’s Contribution: If an intermediary or conduit for a contribution originating from another source exercised any “direction or control” over the choice of the recipient candidate or state official, the contribution is considered to be by both the original contributor and the conduit or intermediary. The Commission has determined that a lobbyist has exercised “direction or control” over an employer’s contribution if the lobbyist:
WAC 390-20-148. A lobbyist who merely recommends who the employer should contribute to is not exercising “direction or control” over the contribution.
Affiliated Entities: Some entities are “affiliated” with others for purposes of sharing a contribution limit. For instance, the following entities share a limit: parent corporations and their subsidiaries; corporate branches and divisions; and international, national, state, and local affiliates of the same union or other membership organization. See RCW 42.17A.455 and WAC 390-16-309.
Bundling: Only individuals may be intermediaries for contributions to candidates and political committees. All lobbyists may transmit contributions from their employers. However, a lobbyist employer that is a business, union, association, PAC or other entity is prohibited from collecting contributions from two or more sources and transmitting those contributions to the intended recipient.
Primary Election: Contributions given to a candidate subject to limits with respect to the primary election may not be made after the primary, unless the candidate lost the election and has debt to retire. These candidates can continue to accept primary election contributions for 30 days after the election or until the debt is retired, whichever comes first.
General Election: General election contributions must be made on or before December 31 of the election year. Washington State has a “freeze period” which starts 30 days before a regular session, which typically falls in the middle of December. During the freeze, state office holders, including legislators, are prohibited from soliciting or accepting campaign contributions. At the start of each December, the Commission will post on its website information about the session freeze. A newly elected legislator or statewide official who is not already holding a state office is not subject to the freeze until sworn into office. The newly elected official is allowed to continue accepting contributions once the freeze starts until the end of the cycle or until sworn in, whichever happens first.
The following entities may NOT contribute to candidates for state office:
Furthermore, a political committee must receive at least $10 each from at least 10 Washington State registered voters before contributing to another political committee.
During a regular legislative session and the 30 days before it starts and during any special session, any legislator or state executive office holder (or person employed by or acting on behalf of one or more of these officials) is prohibited from soliciting or accepting contributions:
Further, since caucus political committees act on behalf of legislators, caucus committee personnel also are prohibited from soliciting or accepting contributions for the purposes mentioned above and further explained in WAC 390-17-400.
Persons, including individuals and entities who lobby or are employed as lobbyists – either full or part-time – must register and report their income and expenditures unless exempt under one or more of the provisions listed below.
A lobbyist may be:
All of these types of lobbyists must register unless they meet one of the statutory exemptions discussed below.
Citizens who – on their own time and without payment or other consideration – write letters make phone calls, send e-mails, or have personal visits with officials in order to express their views on issues have no registration or reporting obligations so long as they do not spend money on whomever they are lobbying for such things as meals, drinks, or other entertainment, gifts, travel, or contributions.
Persons who attempt to influence the passage or defeat of legislation and/or the adoption or rejection of administrative rules are exempt from registering as lobbyists if they meet one or more of the following criteria:
Limit lobbying activities to appearances before public sessions of legislative committees or public hearings of state agencies;
At the request of a state agency, participate in that agency’s efforts to reach consensus on possible rulemaking under RCW 34.05.310(2). Once notice of a proposed rule has been published, efforts to influence actions on that proposed rule are no longer exempt.
Are working members of the print or broadcast media preparing news reports, feature articles or editorial comment;
Lobby without compensation or “other consideration” for acting as a lobbyist, provided no expenditures are made for or on behalf of the people being lobbied. A person who is reimbursed for lobbying expenses is receiving “other consideration” and is required to register regardless of whether the person is receiving other payment for his or her services. WAC 390-05-220 defines “other consideration” as payment for services, reimbursement or payment of expenses, promise or delivery of goods or services or granting of benefits or privileges that have a tangible and identifiable value.
Individuals who only monitor legislation and/or observe committee hearings and legislative floor debate do not need to register or report their activities.
A lobbyist must file a registration form (PDC Form L-1) within 30 days of being employed to lobby or before lobbying, whichever comes first. A lobbyist is required to file a separate L-1 for each employer. If any of the information on an L-1 changes once it is filed, the L-1 needs to be amended within one week of the change occurring. The registration must be filed electronically.
Someone who will be filing reports for lobbyists and/or lobbyist employers must get access to the electronic filing system. This is done by first setting up a user account. The current system is not specific to a single lobbyist/firm or lobbyist employer. This means that individuals who are filing for more than one lobbyist/firm and/or lobbyist employer may do so through ONE user account. If the user has already set up a user account, please proceed to one of the next steps to either set up a new lobbyist/firm or to link an existing lobbyist/firm or employer.
Registrations filed October 1, 2018 or later expire in January 2021, unless the lobbyist or lobbyist employer terminates the registration on an earlier date.
A lobbyist should terminate an employer’s registration when the lobbying functions have ended. Terminations must be done by amending the registration in the electronic filing application.
Lobbyist employers may terminate registrations by submitting a written statement identifying which lobbyist is being terminated and as of what date.
A lobbyist must file an L-2 for the last month or portion thereof for which he or she was registered. For example, if lobbying activities conclude on May 23, an L-2 covering May activity would be filed on or before June 15 and must include the termination notice.
A lobbyist may temporarily suspend a registration by amending the registration to indicate the months in which no lobbying will be done for a specific time, no lobbying expenditures will be made during the time specified and no compensation will be earned for lobbying. During the period of the suspension, no monthly L-2 reports are required.
The lobbyist will complete a registration and the employer approves the registration statement. Since the form is usually filled out by the lobbyist, the employer's approval serves as confirmation that the information specified on the registration accurately reflects the lobbying arrangement. Until the employer approves the registration, the lobbyist may not participate in any lobbying activity, so it is crucial that the approval be done in a timely manner.
Employers should review all information in their electronic account for accuracy. When logged into the employer’s account, review employer information by clicking "Edit Employer Information" in the "Employer Menu." Be sure the information correctly identifies the employer, the contact person, the employer's mailing address and a current email address. The PDC will send the L3 reminder and other employer notices to the email address listed in the employer information.
Also, make sure the employer's occupation, business type or purpose is accurately stated using the list shown below.
If the lobbyist employer is a membership organization, or a representative of businesses, groups, associations, or organizations then "Yes. The list is attached" box should be checked. You, as the employer, will have to supply the list of your members/funders who:
(1) have paid over $1,450 during either of the past two years in dues, fees or payments or
(2) are expected this year to pay over $1,450. If none of the members/funders exceeds either threshold, check the box “Yes. However no member/funder has paid, pays, or is expected to pay over $1,450.”
Verify that any employer-affiliated political committee whose funds may be used by the lobbyist to make political contributions is accurately identified.
The individual who approves on behalf of the employer must certify that they are authorized to sign by clicking the "I certify" field on behalf of the employer named. This person will also approve the L-3 expense report. (Note, whenever a lobbyist registration is filed, an L-3 expense report must also be filed, regardless of whether any reportable expenses were made.)
Amendments to any of the information on the L-1 form are to be filed within one week of the change prompting the revision.
Report expenses and compensation on an accrual basis. That is, include expenses on the report for the year in which they were incurred or earned, not when they were actually paid or received.
Report identifies recipients and amounts of contributions exceeding $110 made by employers of lobbyists.
Discloses expenses of sponsors of lobbying campaigns designed to gain public support for their positions. Includes list of contributors to these campaigns
Shows contributions of $1,000 or more given to state & local candidates, political committees, ballot measure committees, and political party committees.
Shows expenditures made for electioneering communications (an ad that clearly identifies at least one candidate for state, local or judicial office; appears within 60 days of an election in the candidate’s jurisdiction; is distributed through radio, television, postal mailing, billboard, newspaper, or periodical; and either alone, or in combination with other communications by the sponsor identifying the candidate, has a fair market value of $1,000 or more.
Shows independent expenditures made for ads that support or oppose a candidate or ballot measure, are valued at $1,000 or more, and are presented to the public within 21 days of a primary, general, or special election.
Shows new employment relationship between lobbyist or lobbyist employer and state officials or employees who might be lobbied.
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.
All L-3 submissions are required to be filed electronically using the online application available at the PDC website.
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.
Expenditures exempt from reporting:
* "Hearings of the legislature" means any regular or special session of the state legislature or any publicly announced meeting of a standing, conference, joint or special committee of either house of the legislature. Travel for other lobbying purposes, such as for meetings with individual legislators or staff, state agency hearings or to attend political fund raisers, etc., is reportable.
When completing reports, neither the lobbyist nor the employer should include any exempt expenses.
Remember, an annual report is due if the employer had a registration for any lobbyist/firm, for any period of the year, regardless of activity level.
Report compensation and expenses on an accrual basis. That is, report them for the year in which each was incurred, not necessarily when paid.
Identify the employer
Identify the reporting period
In the application you will now see a series of tabs which require completion. Below are details about each tab and the information contained on each.
Personal
On this tab, verify the contact name of the person completing the report. Enter the calendar year that the report covers.
Lobbyist
Listed on this tab are the total salary and fees reported by all registered lobbyists. These numbers are auto filled from the lobbyists/lobbyist firms monthly expense reports (L-2). The total amount you disclose for each lobbyist 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. Verify that these numbers are correct and proceed to the next tab.
If the numbers are not correct, indicate that as well. You will then indicate the name of the lobbyist/firm with the incorrect information, using the dropdown as well as your revised compensation and expense figures. Once you have done so, the lobbyist will be contacted electronically to review the numbers you have provided so they may amend reports as necessary.
Contributions
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.
(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.)
Report the total amount of contributions -- not otherwise reported by your lobbyist -- made by the employer directly to a candidate for state office, or to political committees supporting or opposing candidates for state office or to political committees supporting or opposing statewide ballot propositions in the Political contributions field.
Include all other contributions previously reported on PDC Form L-3c. as an aggregate figure in the Aggregate total of all non-itemize political contributions field.
If the employer has an affiliated political committee which made contributions, answer "Yes" to this question and enter the name of the committee in the List the affiliated PACs that made contributions field. 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.
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
Independent Expenditures
On this tab the employer will report independent expenditure activity in the following categories: independent expenditure expenses to support or oppose legislative or state executive candidates, and expenses supporting or opposing a statewide ballot proposition.
Expenditures
On this tab the employer will report the following, if applicable:
Other Compensation
On this tab, the employer will report the following, if applicable:employment compensation paid to state elected officials or successful candidates, and payments for professional services in which a state elected official, successful candidate for a state office or a member of the official’s or candidate’s immediate family holds an office or ownership interest of 10% or more. (Do not include the names of companies or organizations from which the employer purchased goods or tangible products in the normal course of business at fair market value).
Submitting the L3 report
Once all questions on each tab have been answered and the appropriate information supplied, the report may be submitted by clicking the Submit to PDC icon.
Although every effort should be made to file complete and accurate reports, mistakes do happen. If you discover an omission or mistake in a previous report that affects the computations on the L-3 report, file an amended report.
Amend the L-3 report as follows: Log into the lobbyist/lobbyist employer account. Under Employers I File For, find the employer name and click on it. When the home page for the employer displays, find the report in question under Submitted Annual Reports (L3) and click on Amend at right. Make the appropriate changes as needed and submit to PDC. Amended L-3 reports should be filed as soon as the error is discovered.
Any person registered or required to be registered as a lobbyist in Washington State or any employer of a person registered or required to be registered as a lobbyist who employs a member of the legislature, an employee of the legislature, a member of a state board or commission, or a full time state employee – if that employee remains partially employed by the state – must file PDC Form L-7 within 15 days of first employing the state official or employee.
Employers of lobbyists should also be aware that they must report, on the L-3 form, the identities of state elected officials, candidates for state office, and the immediate family members of these persons if the employer paid them in compensation during the calendar year for which the report is being filed.
In addition, payments for professional services to corporations, partnerships, joint ventures, associations, unions, or other entities in which the elected official, candidate or family member holds any office, directorship or any general partnership interest or ownership interest of 10% or more must also be reported.
PDC annually publishes a "List of Elected Officials" that identifies state officials and companies with which they are associated. Reviewing this list will help lobbyist employers identify those entities that were paid at least $2,400 for professional services, and that therefore need to be disclosed on the L-3.
Personnel officers and purchasing agents (as well as the accounting department) of lobbyists and lobbyist employers must be alert to these reporting requirements. Some lobbyists and employers include a question on employment applications to assist them in determining whether a relationship will be subsequently reportable.