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:

1. Engaging in any activity as a lobbyist before registering;
2. Knowingly deceiving or attempting to deceive any legislator as to any fact pertaining to any pending or proposed legislation;
3. Causing or influencing the introduction of any bill or amendment for the purpose of afterwards being employed to secure its defeat;
4. Knowingly representing an interest adverse to any of his/her employers without first obtaining the employer's written consent and after full disclosure of the adverse interest;
5. Exercising any undue influence, extortion, or unlawful retaliation upon any legislator by reason of the legislator's position or his vote on any pending or proposed legislation;
6. Entering into an agreement, arrangement, or understanding that all or a portion of the person's compensation is contingent upon the success of any attempt to influence legislation.

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.  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, write the Commission a letter that:

• states all the reasons why reporting the required information would cause a hardship,
• suggests a modification that would relieve the hardship, and
• gives reasons why granting your request would not "frustrate the purposes" of the disclosure law. 

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: 

• Report all compensation and expenses on an accrual basis.  That is, report them for the month in which they were earned or incurred, not necessarily received or paid. 
• Lobbying reports cover a calendar month and lobbyist employer reports cover a calendar year.  Books should be established, expense accounts submitted and, where possible, arrangements made with vendors for billing to cover a similar period.
• Records substantiating reports must be kept for five years from the file date of the report. 
• Separate accounts, subsidiary ledgers or a similar system to segregate or identify expenses for lobbying from other expenses should be established.  PDC recommends a separate bank account; separate credit cards for lobbyist purchases, identification on expense vouchers (or separate vouchers) for lobbying expenses and other discrete identification of expenses for lobbying. 
• Keep receipts for all purchases.  Annotate receipts with the date of purchase, purpose and persons in the party.  Many credit card charge slips provide space for this information. 
• Keep a record of time spent lobbying.  This is especially important for those who lobby part-time in addition to performing other duties for the employer, as well as for those lobbyists who have more than one employer. 
• Have one person in the lobbying organization who is the focal point for gathering financial data for lobbying reports.  In small organizations, this person may be the lobbyist.  In larger firms, it will usually be the accountant who reviews expense accounts or travel claims and vouchers. 
• Personnel officers and purchasing agents (as well as the accounting department) of lobbyists and their employers must be alert to the requirement to report employment or business relationships with elected officials, state employees, their families, and firms in which those individuals are officers, directors or major stockholders.  Many lobbyists and employers include a question on employment applications to assist them in determining whether a relationship will be subsequently reportable.  PDC annually publishes a "List of Elected Officials" that identifies state officials and companies with which they are associated. 
• For special or unusual lobbying activities, involve the accountant or other person completing the expenditure reports during the planning stage.  In this way, any record keeping and reporting problems can be anticipated and remedied more easily.  PDC can often offer suggestions or the lobbyist could request in writing a reporting modification from the Commission.

The Employer's Role

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.)

The Registration Form

1. Include the full name and permanent mailing address of the registered lobbyist.  If the lobbyist is a firm, public relations business, partnership or other entity employing two or more individuals who lobby, give this entity’s name and address (the names of the individual lobbying agents will be listed in line 11).
2. If you, as the lobbyist, have a session-only address that differs from your permanent address, list it here.  Be sure to include your business telephone numbers, both permanent and temporary, cell phone or pager number and e-mail address.
3. Show the lobbyist employer’s current address as well as the name and title of the person at the employer’s address to whom questions should be directed and the L-3 form should be sent.  Do not list your own name and/or address unless you are lobbying on your own behalf (i.e., there is no other lobbyist employer).

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:

• Advertising/Print Media
• Agriculture
• Amusements
• Business Organization (e.g., chamber of commerce or non-aligned business group such as United for Washington; trade associations should choose a more definitive descriptive term (e.g., a medical association would choose "health care: practitioners))
• Commercial services
• Construction
• Education (labor organizations select "unions")
• Energy: nuclear
• Energy: petroleum
• Environment
• Finance (banks, securities & investment firms)
• Fisheries
• Food / Beverage / Lodging
• Forest / Wood products
• Government (county & local government associations)
• Health care: facilities
• Health care: insurance
• Health care: practitioners
• Health care: products
• Insurance
• Lobbying firm (only used by subcontractor lobbyists)
• Manufacturing
• Mining
• Real Estate / Development (includes property management)
• Recreation/Leisure: arts
• Recreation/Leisure: outdoor
• Religious organizations
• Retailing
• Social / Civil / Fraternal organizations
• Social services
• Tobacco
• Transportation: air
• Transportation: land
• Transportation: marine
• Unions: public employee
• Unions: teacher
• Unions: trade
• Utilities: broadcast
• Utilities: electric
• Utilities: telephone
• Utilities: water & waste

4. Identify the name of the person who is responsible for keeping the records that substantiate your lobbying reports.  If it’s you, so state.  This person could also be a treasurer or accountant who approves expense payments.
5. If you receive compensation, salary, or an hourly wage for the time you spend lobbying, indicate how much.  If you are receiving no compensation for lobbying, put “none.”
6. If you are a regular employee of the lobbyist employer, show your normal rate of pay unless you receive a different amount for the time you spend lobbying.  If you are a contract lobbyist, show the amount specified in your contract for lobbying.
7. The amount of compensation reported on the L-1 is a general statement of the amount or rate of pay you anticipate for lobbying.  The actual amounts earned will appear on your monthly L-2 reports.
8. Be sure to check all boxes that describe your employment status with the lobbyist employer.
9. How and to what degree will you be paid for lobbying expenses other than your salary?  If you pay your expenses from your salary or retainer, check “no” and see L-2 example entitled “Flat Fee, No Expense Payments or Reimbursements Received.”  In the adjoining space, indicate which expenses, if any, the employer will pay directly to the vendor on your behalf, rather than through a reimbursement payment to you.  For example, you charge vehicles you rent for lobbying-related travel to the employer, and the employer, in turn, directly pays the rental company.
10. Indicate the expected duration of your lobbying effort.  Regardless of what you designate here, the L-2 reports are required until you give notice of termination on line 14 of the L-2 report or provide other written notice.  An L-2 is required, even if it shows zero expenses, for any month or partial month that the registration is in force.
11. If your lobbyist employer is not a membership association or representative entity, check No.  If your employer is an association or similar membership entity or a representative of businesses, groups, associations, or organizations, and if any of the members/funders is expected this year to pay dues, fees, or other payments amount to over $1,450 or has paid over $1,450 during either of the past two years in dues, fees, or payments, check "Yes.  The list is attached."  If your employer is an association or similar membership entity, and no member has paid, pays, or is expected to pay over $1,450, check the box indicating "Yes.  However no member has paid, pays, or is expected to pay over $1,450."
12. Some employers have related or closely affiliated political committees whose funds may be used by you to make political contributions.  If the committee’s funds are available for your use in making contributions, check Yes and identify the committee.  If there is no affiliated committee or the committee’s funds will not be available to you for making contributions, check "No."
13. If the registered lobbyist is a lobbying firm, business, partnership or other entity, use the space provided to identify the firm’s employees or partners who will conduct the actual lobbying.
14. Check the subject areas about which you anticipate lobbying the legislature.
15. Your registration must be signed by you and the president or other appropriate officer of the lobbyist employer.  The registration is not valid unless signed by both.

The ID form:

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

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.

1. Print or type the employer's full name, contact person, mailing address, telephone number and e-mail address.  Use the same employer name that appears on the L-1 registration statement.  Note any name change in a letter accompanying the L-3 report.
2. On a separate line, list each individual, firm or company that was registered (or should have been registered) to lobby on your behalf at any time during the reporting period.  Use an additional sheet if you had more than three lobbyists

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:

1. unreimbursed personal living and travel expenses unless they are directly for lobbying,
2. expenses for personal living accommodations (whether they are for maintenance of the lobbyist's home or for rented or leased accommodations, including hotel and motel rooms,
3. personal travel expenses to hearings of the legislature* (e.g., mileage, vehicle rentals, other transportation, meals, beverages, laundry, parking, toiletry purchases, etc.),
4. telephone and facsimile expenses,
5. office expenses, including rent,
6. support staff expenses, including salaries, unless the staffer lobbies, and
7. expenses to produce reports, documents and other communications primarily designed for other purposes and distributed incidentally as part of the lobbying effort.  "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 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. In Items 3 through 7, you will report expenditures that are over and above what is reported in Item 2.  If, in Items 3 - 7, you include expenses already accounted for in Item 2, you will erroneously inflate the overall total lobbying expense figure computed at the bottom of the front page of the 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.

4. Report, on line 4a, the total amount of contributions -- not otherwise accounted for in Item 2 -- 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.  Also include all contributions previously reported on PDC Form L-3c.

(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: 

• campaign contributions to candidates for statewide and legislative office;
• contributions to political party organizations and other political committees; 
• tickets to fund raisers, including caucus political committee events; 
• contributions to political committees supporting or opposing a state ballot proposition; 
• in-kind contributions of staff assistance, office space, equipment, postage and copying services; 
• donation or use of goods or services for less than fair market value; 
• forgiveness of a debt; 
• loans to a candidate or political committee; and 
• campaign contributions from affiliated subsidiary or parent corporations, if the contribution was made at the request or direction of the lobbyist employer. 

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.

5. Show the total amount spent during the year for "independent expenditures" supporting or opposing one or more candidates for state office or statewide ballot measures.  As the name implies, "independent expenditures" are those made totally independent of a candidate's campaign, political consultant, or any agent of the candidate.  If the expense relates to a ballot measure, it must be done independently of any committee supporting or opposing the ballot measure.  Expenditures not done independently of a candidate's campaign or agent (or, in the case of ballot measures, committees supporting or opposing the measure) count as contributions to that candidate or ballot measure committee.

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.

6. Show the aggregate of payments made or incurred to legislators, state elected officials, state appointed officials, state employees or members of their immediate families or to companies in which these persons were officers, directors or major stockholders (they owned 10% or more) if the payments were for the purpose of honoring or benefiting the person because of his or her official position.  For example, if the lobbyist employer gave a contract to an elected official because of his or her office, report the amount of the contract here and give the details concerning the transaction in Item 14.  Do not include payments made in the normal course of your business.  "Immediate family" includes the official's spouse, dependent children, and other dependent relatives if they live in the official's household.
7. Show the total expenditures made or incurred for other reportable lobbying expenses not included in Items 2 through 6 above.  Example:  A lobbyist employer (independent of the lobbyist) makes a contribution to a charitable or civic organization at the request or suggestion of a public official.  For any expenses accounted for on line 7, attach a list itemizing each expense according to date, recipient, purpose and amount.
8. After both sides of the form are completed, the report must be signed by the organization president, treasurer, comptroller or similar officer who is responsible for the lobbying effort and its financing.  Include this officer's typed or printed name and title under the signature.  If the report is prepared by an individual or business other than the person signing the form, please provide the preparer's name and daytime telephone number on an attached sheet.
9. On the front of the form, you provided a lump sum total for direct expenditures made to entertain, or to provide gifts, travel or enrollment or course fees for legislators, state officials, state employees and members of their immediate families.  In this section, you itemize each such expenditure that exceeds $50.  Also include the value of transportation in employer-owned vehicles or aircraft.  Supply all the information requested on the form, plus the identity of all persons who were entertained or received an item.  Attach additional pages if more space is required.
10. In this block, itemize contributions made directly by the employer that aggregate over $25 to candidates for state office, political committees (PACs) that support or oppose candidates, or committees supporting or opposing statewide ballot measures.  Again, supply all the information requested.  If a recipient's total results from more than one contribution, list each date a contribution was made in the date column.  If necessary, attach additional pages.
11. Itemize independent expenditures for political advertising that either alone or in conjunction with other such expenditures supporting or opposing a state office candidate or a statewide ballot measure total more than  $950.  See Item 5 above (or WAC 390-16-313) for more information on "independent expenditures."  A "candidate for state office" is defined on page 20.  Supply all information specified on the form.  Call PDC at (360) 753-1111/toll free 1-877-601-2828 for assistance.
12. Provide details (as specified on the form) concerning state elected officials, legislators, successful candidates for these offices and members of their immediate families to whom the lobbyist employer paid or incurred an obligation to pay $2,400 or more during the reporting period for employment or professional services.  Use the dollar code to show the range of the total compensation paid. Do not include the names of officials, successful candidates or their family members from whom the employer has purchased real estate or other tangible goods in a normal business transaction.   "State elected official" means the 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, or any person appointed to fill a vacancy in one of those offices.
13. In this section, disclose the details if compensation of $2,400 or more was paid or is due to be paid by the lobbyist employer for professional services provided during the reporting period by any corporation, partnership, joint venture, association or other entity in which a state elected official, successful candidate for state office or member of the official's or candidate's immediate family holds office, partnership, directorship or ownership interest of 10% or more.  In other words, if the employer paid over $2,400 for professional services to a business in which an official, successful candidate or family member of either of these is involved, disclose the details of the payment.  For example, payments for architect fees, legal fees or retainers, investment, accounting, engineering and medical services, as well as training or education contracts and similar consultative services would be reported.  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.
14. Itemize in this section those separate payments to honor, influence or benefit state elected officials, successful candidates for state office or their family members that are incorporated in the total shown in Item 6 on the front of the form.  Include honoraria, speaker's fees, payment of medical bills or office staff or equipment, as well as any contracts and fees given to state officials, successful state office candidates or their immediate family members on a selective basis

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.

Receptions

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:

• Sponsored by a person other than a lobbyist [the sponsor may be a lobbyist employer],
• Attended by individuals other than legislators, lobbyists, and lobbyist employers,
• A social event, and
• Does not include a sit down meal.

 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.)

Receptions hosted by an employer of multiple lobbyists:

Only the principal lobbyist for the employer will disclose the reception as explained above.

Receptions hosted by multiple lobbyist employers:

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.

Reception hosted by an organization that does not employ lobbyists:

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.

Entertainment

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.

Involving Association Members in Lobbying Effort

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.

One-Time Group Activities (rallies, organized lobby dates, etc.)

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 15^th 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.

Field Trips and Other Excursions

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.

Political Advertising Expenses

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.

Public Relations, Telemarketing and Polling Expenses

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: 

• expenditures for market research done in-house or through a contract with an outside vendor;
• expenditures for the development, production and distribution of advertising to enhance the lobbyist employer's image;
• an association's expenses to poll the general public or a segment of the general public about a matter that may be the subject of legislation;
• costs associated with producing press releases, op-ed pieces or other articles designed to sway public opinion about possible tax increases or any change in law; and
• costs associated with contacting editorial boards regarding the need for certain statutory changes.

Definition

A program "addressed to the general public, a substantial portion of which is intended, designed or calculated primarily to influence state legislation." 

Sponsor's Disclosure Requirements

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:

• for a full-page newspaper ad supporting a bill pending in the legislature,
• hiring a person to organize public meetings in order to influence action on issues being considered by the legislature, and/or
• undertaking any other activity that satisfies the definition of grass roots lobbying,

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.  See page 9 for more information. 

L-6 Exemption

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)

New Hires

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.

Payments of $2,400 Or More

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