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 thes 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 insure 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, politcal party committees, and caucus campaign committes.
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 may not be filed electronically.
Registrations filed October 1, 2014 or later expire on January 8, 2017, 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 in writing, preferably by completing Line 14 on the Lobbyist Monthly Expense Report (PDC Form L-2), showing the employer’s name and the date of the termination. A letter supplying this same information may also be submitted. Once terminated, a lobbyist must file a new L-1 before doing any further lobbying on behalf of that client-employer.
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 1 to May 23 would be filed on or before June 15 and must include the termination notice.
A lobbyist may temporarily suspend a registration by notifying the Commission in writing that no lobbying will be done for a specific period of 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. A lobbyist who has suspended a registration reinstates it by notifying the Commission in writing that s/he is reactivating the registration. The reinstatement letter must either confirm that the L-1 on file for the employer-client is still accurate or include an amended L-1. A registration suspended by the employer must be reinstated by that employer.
Both the lobbyist and the employer sign the registration statement. Since the form is usually filled out by the lobbyist, the employer's signature serves as confirmation that the information specified on the form accurately reflects the lobbying arrangement.
Employers should review the entire form. Be sure Item 3 correctly identifies the employer, the contact person, and the employer's mailing address. PDC will send the L-3 form and other employer notices to the name and address in Item 3.
Also, make sure the employer's occupation, business type or purpose is accurately stated using the list shown below.
Regarding Item 9 on the registration; 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) is 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.”
Regarding Item 10, verify that any employer-affiliated political committee whose funds may be used by the lobbyist to make political contributions is accurately identified.
And, finally, the individual who signs on behalf of the employer should be the president or other appropriate officer. This person will also sign 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.)
In the space provided, identify the employer's business or occupation by selecting one of the categories listed below that best describes your employer's occupation or business type:
Provide a brief biographical sketch and a passport size (2”x2”) glossy photo. The photo must have been taken within the last 12 months. Be sure to include the full name of all employers for whom you will be lobbying on the ID Page as well as all the other information. The biography should briefly explain your background, your present interests and be approximately 50 words long. Be sure to describe your qualifications, especially if you have expertise in the areas in which you’ll be lobbying.
Note: A firm or company registering as a lobbyist must submit an identification page, with photo, for each individual who will lobby on behalf of the firm
It is not unusual for businesses and organizations to assign one of their regular employees the task of lobbying. Registration and reporting by these lobbyists are required. On the L-2, an employee lobbyist will prorate his or her gross pay according to the amount of time spent lobbying in order to arrive at the amount of compensation for lobbying that is required to be reported. Some months may show little or no activity, others may reflect nearly full-time lobbying work.
L-1, L-2
A person who provides lobbying services on a contract basis is a contract lobbyist. These lobbyists are not employees of the client-employers on whose behalf they work. Contract lobbyists may have one or more lobbying employers. These lobbyists may receive a fee plus expenses or simply a flat fee. Contract lobbyists must register and report for all employers, unless activity for a given employer falls within one of the exemptions. Contract lobbyists may also be consultants, public relations experts or the like. Payments received for non-lobbying related activity are not reportable.
L-1, L-2
A lobbyist – usually a contract lobbyist – may decide to subcontract out some of his or her lobbying duties to another lobbyist. The latter is the subcontract lobbyist. The principal lobbyist is the lobbyist employer. Both must register and report.
Besides the initial registration, the principal contract lobbyist has two additional reporting responsibilities. First, the principal lobbyist discloses payments to the subcontractor on lines 9 & 18 of the L-2. Second, the principal lobbyist files an Employer’s Lobbyist Expenses Report (PDC Form L-3) summarizing payments to the subcontractor lobbyist and any other reportable expenditure made on that lobbyist’s behalf.
L-1, L-2, L-3
File the L-1 listing the principal lobbyist as the employer. In the Remarks section, name the clients for whom you will lobby. The subcontractor will file monthly L-2 reports disclosing any payments received from the principal lobbyist and any expenditure made
L-1, L-2
Some businesses are formed strictly to provide lobbying services to clients. Other law firms, public relations firms and consultant businesses provide lobbying services as part of their overall package of services. For registration and reporting purposes, each is considered a lobbying firm. The lobbying firm files a registration statement for each client-employer, listing the names of the firm’s partners or employees who will conduct the actual lobbying on line 11 of the L-1. The monthly L-2 report will show the amount of compensation received by the firm from each client for all lobbying services, as well as the combined expenses of the individuals who did the lobbying for that client.
L-1, L-2
Note: The firm’s partners or employees (agents) doing the actual lobbying are listed on line 11 of the L-1 (these individuals do not file separate L-1 forms, although an ID page must be submitted for each). The firm is expected to file one combined L-2 report showing the compensation earned and expenditures made by all lobbying agents; if the firm fails to file accurate and timely L-2s, the responsibility rests with the agents.
This is a person who lobbies, but satisfies one of the exemptions and is not required to register or report. Occasionally, the lobbyist elects to register anyway. Volunteer lobbyists who choose to register and report should note their status in the “Remarks” section of the L-1 form, so it is clear that this is a voluntary registration and no monthly L-2 reports are required. Monthly expense reports will be required unless the registration is marked “volunteer.”
L-1 (Optional)
Note: Exempt from registering and reporting; if lobbyist chooses to register, add “volunteer” in the Remarks section so that you will not be required to file monthly L-2 reports.
One type of unsalaried lobbyist is a person who lobbies without compensation except for reimbursement of travel and personal expenses. It would not be unusual for a neighborhood association or other locally-based citizens group to have such a lobbyist.
This unsalaried lobbyist is required to register but does not need to file monthly L-2 reports if the payments received are for non-reportable expenses. If no reportable expenses will be made, note that fact in the “Remarks” section and also state that no L-2 reports will be filed. Otherwise, monthly expense reports are required.
If an unsalaried lobbyist plans on making reportable expenses – for things such as gifts, entertainment, contributions or providing travel for legislators or other state employees – the lobbyist must register and file monthly L-2 reports, even though many of the reports may show zero expenditure activity.
Another type of unsalaried lobbyists are people who take vacation or leave time from their jobs to lobby and are only reimbursed for lobbying-related expenses by the group or organization on whose behalf they lobby. Persons who receive compensation for the time they spend lobbying – meaning they lobby on company time but do not receive special or premium pay for the time spent lobbying – are, in fact, being paid to lobby and are considered salaried or paid lobbyists.
L-1
Note: Many unsalaried lobbyists need to register because they received “other consideration” for lobbying; if no reportable expenditures will be made, however, they do not need to file L-2 reports as long as they state in the Remarks section, “no reportable expenses."
This is a lobbyist who will be pursuing his or her own agenda with the legislature or state agencies. There is no “employer of lobbyist.” The lobbyist is working on his or her own behalf. Frequently, self-employed lobbyists fall under one of the exemptions outlined above. However, if the lobbyist is not exempt (because, for example, he or she spends money to entertain a legislator), then he or she must register, showing him or herself as the lobbyist employer. If the person makes or plans to make reportable expenses, then monthly L-2 filing is also required.
If a person lobbies on behalf of one’s own business then the person registers and reports as a lobbyist showing the business as the lobbyist employer. That business will then file an annual L-3 lobbyist employer report.
L-1, L-2, L-3
Note: If a self-employed lobbyist will not make reportable lobbying expenditures (e.g., contributions or entertainment expenses), no registration or reporting is required. Those who choose to register should add "volunteer" in the Remarks section to relieve themselves of having to file monthly expenditure reports.
Persons who limit their lobbying to no more than four days (or parts of four days) in three consecutive months and who spend no more than $35 in the aggregate on one or more public officials or employees during those three months are casual lobbyists. Frequently, these are the in-house specialists (actual employees of the lobbyist employer) who visit with legislators or other officials to lend their particular expertise to the discussion. Casual lobbyists do not need to register or report. (Casual lobbyists are advised to keep track of the time they spend lobbying and any expenditures they make in the event they end up registering and reporting because they are about to exceed the four-day limit. Note that any fraction of time spent lobbying on a given day counts as one of the four days.)
This is a person who, out of personal interest or for college credit, wants to learn the lobbying ropes. Generally, no or minimal payment is received and, whatever payment is received, comes from the lobbyist who agrees to tutor the intern and not from the lobbyist employer.
An intern whose only activities are to monitor legislation, keep vote tallies, and/or observe hearings and floor debate does not register and report. However, if an intern receives compensation or other consideration for actual lobbying, the intern must register showing the principal lobbyist as the employer. Use the “Remarks” section to list the names of those employers on whose behalf the intern is authorized to lobby. Both the intern and the principal lobbyist will file monthly L-2 reports. In addition, the principal lobbyist will file an Employer’s Lobbying Expenses Reports (PDC Form L-3) disclosing payments to and expenditures made on behalf of the intern.
L-1, L-2 | *Mentor lobbyist required to file an L-3.
Many state and local governmental agencies designate one or more employees of the agency as their lobbyists. These employees are not required to register and report on L-1 and L-2 forms. Instead, public agencies file quarterly reports (on PDC Form L-5) if they engage in reportable lobbying activity.
Some public agencies contract with private sector lobbyists. These contract lobbyists must register on the L-1 form and file L-2 reports for these public agency employers. The agencies do not file an annual Employer’s Lobbying Expenses Report (Form L-3), but rather include payments to or on behalf of the contract lobbyists on their quarterly L-5 reports.
L-1, L-2
L-5 (A quarterly report required from public agencies who contract for lobbying services or whose employees lobby on behalf of the agency.) The agency employee does not have an individual filing requirement.
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.
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 front side of the L-3 form (Lines 2 through 7), file an amended report.
Prepare an amended L-3 report as follows: Using a copy of your original report, cross out the amounts that have changed and insert the correct amounts above the previous figures. Be sure to change all affected amounts, including totals. Write "AMENDED" prominently at the top of the form and re-sign and date the form. Amended L-3 reports should be filed as soon as the error is discovered.
If a reporting error occurred that does not affect the computations, you may submit a letter of explanation rather than filing a complete, amended report.
Amendments to any of the information on the L-1 form are to be filed within one week of the change prompting the revision, and the entire form must be completed (not simply the new information).
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.
Expenditures for the special lobbying activities described here are primarily disclosed by the lobbyist on his/her monthly report. The lobbyist employer is responsible for tracking direct expenditures and relaying that information to the lobbyist at the end of each month.
Anyone planning to host a reception or entertain state officials or employees is advised to contact the Legislation Ethics Board (360) 786-7540, the Executive Ethics Board (360) 664-0871, or the Commission on Judicial Conduct (360) 753‑4585 to verify that state officials and employees may legally participate in the planned event.
Lobbyists disclose reception costs on the L-2, lines 5 and 15. On line 15, identify the reception date, sponsor’s name, total cost, attendees’ names, and, in some cases,* a per person cost calculated by dividing the number expected to attend into the total cost. Additionally, if the per person food and beverage cost exceeds $50, notify elected officials and professional staff who attend so that they can fulfill their disclosure requirements. The per person food and beverage cost is also calculated using the number of people expected to attend.
*Do I have to include a per person cost? Effective January 11, 2015, WAC 390-20-020A eliminates the per person cost disclosure requirement and relieves attendees of disclosing food and beverage costs exceeding $50 for a reception to which the entire legislature, all members of a chamber, or any of the two largest caucuses recognized in each chamber are invited so long as the reception is:
Always include the list of attendees when itemizing a reception on line 15, even if the reception meets the criteria set out in WAC 390-20-020A. Submitting the reception’s sign-in sheet is sufficient. (Lobbyists who electronically file monthly reports may email to pdc@pdc.wa.gov an attachment, such as a sign-in sheet, and ask that it be appended to a particular report.)
Only the principal lobbyist for the employer will disclose the reception as explained above.
The principal lobbyist for each employer discloses the employer’s portion on lines 5 and 15. Not all of these lobbyists are required to list the reception attendees and, when necessary, the per person cost. Only one is required to include those details on line 15 and the others, on line 15 of their reports, will reference the lobbyist’s report that contains the attendees’ names. If the reception does not meet the criteria explained above and the per person cost for food and beverage exceeds $50, one of the principal lobbyists must provide the food and beverage cost to elected officials and professional staff who attend. (Calculate the food and beverage cost by dividing the full food & beverage costs by the expected number of attendees. Use the full food & beverage costs regardless of how much each of the lobbyist employers paid.) Each lobbyist employer who paid a portion should be listed as the “Source of Gift” on the L-2 memo report.
Hosting even just a one-time event intended to influence the passage or defeat of legislation will trigger the registration and disclosure requirements, unless the organization is exempt because it spends less than $35, as explained on page 3. The principal organizer will register as the lobbyist and disclose the lobbying-related expenditures on an L-2. The registration may be terminated once all of the lobbying-related expenditures have been disclosed and the organization is certain that it will not engage in any other lobbying through the end of the registration cycle.
Lobbyists disclose entertainment costs on the L-2, line 5. If more than $50 is spent for the occasion, itemize the entertainment on line 15. When itemizing, describe the entertainment and disclose the sponsor’s name, total cost for the occasion, and the names of who participated along with the amount spent on each. Related costs, such as tax and tip, should be disclosed but need not be part of the per person cost. See the Legislative Ethics Board’s Rule 5 – Infrequent Meals, effective January 1, 2015, if the entertainment includes providing a meal to a legislator.
Some lobbyists who have associations as lobbying clients arrange to have members of the association entertain legislators from the member’s district. For example, a contract lobbyist for the Widget Manufacturing Association arranges for an association member to take his state senator to lunch or dinner to discuss pending legislation. The association member uses his own funds to pay for this entertainment.
If the association member spends more than $35 on this entertainment (including his own meal), this expenditure needs to be reported as a lobbying expense. In lieu of the association member registering and reporting, the contract lobbyist may include the expense, along with an explanation, on his or her L-2 report as an “Entertainment” expense.
If the association member spends more than $50 on the legislator (or a combination of the official and the official’s family members), the contract lobbyist must also send to the official a copy of the L-2 disclosing the expense or an L-2 Memo Report.
If the contract lobbyist in this example chooses not to report the lobbying expenditures of association members, or the lobbyist was not involved in arranging the entertainment of legislators by association members and is unaware that this activity is occurring, each association member who spends more than $35 in connection with lobbying activities must register and report as a lobbyist.
If the association member is not reimbursed by the association for lobbying expenditures, the member will register as a “self-employed” lobbyist. Monthly L-2 reports are required until he or she terminates the registration.
A large group of people decides to visit Olympia to lobby on a particular issue. For example, a delegation from a local chamber of commerce charters a bus, travels to Olympia to rally on the capitol steps, meet with legislators and host a legislative reception. In lieu of each member of the delegation registering as a lobbyist for this brief visit, the group leader may register on an L-1 prior to the actual lobbying taking place and report the expenses of all members of the group on an L-2 form. The L-2 is due on the 15th of the month following the one in which the lobbying occurred. Generally, this person will terminate his or her registration on the same L-2 report that discloses the expenditures for the trip.
Expenditures by the lobbyist or lobbyist employer for field trips or other excursions provided to elected and appointed officials must be disclosed on the L-2 report. Notify the individuals of the cost of travel provided to them so that so that they can fulfill their annual reporting requirement.
Expenditures by the lobbyist or lobbyist employer for political advertising supporting or opposing a state or local candidate or ballot measure must be disclosed on the L-2 report. For example, if a lobbyist or lobbyist employer – alone or in conjunction with others – pays for a direct mail piece supporting a candidate, all of the lobbyist’s or employer’s costs associated with developing, producing and distributing the political ad must be reported on lines 8 and 17 of the L-2.
Expenditures for political ads are reportable on the L-2 (in addition to any campaign reporting that is required), whether the ad constitutes an independent expenditure or qualifies as a contribution to a candidate or ballot measure committee. However, a monetary contribution from a lobbyist or lobbyist employer to a candidate or political committee that the recipient in turn decides to spend on political advertising is not reportable by the lobbyist as a political advertising expense, but is still reportable on lines 6 and 16 as a contribution.
Sponsors of electioneering communications or independent expenditures that support or oppose a candidate or ballot measure, are valued at $1,000 or more, and appear within 21 days of a primary, general, or special election are required to file PDC Form C-6 within 24 hours of, or on the first working day after, the date the advertisement was first published, mailed, or otherwise presented to the public. Read more about disclosing political advertising.
Report expenditures made by lobbyists or lobbyist employers for public relations, telemarketing, polling or similar expenses if the expenses were in any way intended, designed or calculated to influence legislation, including the adoption of any rule, rate or standard by a state agency.
At present, PDC is relying on the following dictionary definitions:
“Public Relations” means the methods and activities employed in persuading the public to understand and regard favorably a person, business or institution.
“Telemarketing” means selling or advertising by telephone.
“Polling” means to question in a survey canvass; a survey of the public or a sample of the public to record opinion or acquire information.
The following types of expenditures are among those that are reportable if they are directly or indirectly intended, designed or calculated to influence legislation or rulemaking:
A program "addressed to the general public, a substantial portion of which is intended, designed or calculated primarily to influence state legislation."
Any person or entity making grass roots lobbying expenditures not reported by a registered lobbyist, a candidate, or a political committee exceeding $700 in the aggregate in any one-month period or exceeding $1,400 in the aggregate in any three-month period must file a grass roots lobbying report.
If an organization sends a notice about pending legislation to its members, or a corporation sends a similar message to its stockholders, the expenses related to these activities are not reportable as grass roots lobbying.
However, if an organization spends over $700 in one month or over $1,400 in three months:
then reporting is required.
The initial grass roots lobbying report (PDC Form L-6) must be filed within 30 days of becoming a sponsor of a grass roots lobbying campaign. Thereafter, sponsors file monthly reports on the 10th of the month covering the preceding calendar month. On the final report show that the activity is concluded.
Lobbyists can relieve their employers from the responsibility of filing an L-6 report, by including grass roots lobbying expenditures on their L-2 reports, only if the grass roots campaign is financed out of the employer's existing funds. If the employer conducts a special fund raising effort or accepts funds from other sources to finance the grass roots lobbying, L-6 reporting is required.
Note that even if a lobbyist employer files an L-6 report covering grass roots lobbying activities, a lobbyist must still disclose on his or her L-2 any of his or her employer's lobbying-related expenditures for public relations, telemarketing or polling activities.
Candidates and political committees who sponsor grass roots lobbying campaigns do not need to file L-6 reports, whether they use existing funds or receive funds from outside sources. All their contribution and expenditure activity, including that related to grass roots lobbying, is fully reported on their campaign disclosure reports (the "C" series)
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 $2,400 or more in compensation during the calendar year for which the report is being filed.
In addition, payments of $2,400 or more 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. Most recent list of elected officials.
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