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 $100 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 $100 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 $100 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.