Three key pieces of legislation:
|
The Virginia Lobbying
Disclosure and Regulation Act,
§§ 2.2-418-435 of the Code of Virginia.
|
Campaign Finance and
Disclosure Act,
§§ 24.2-900-930 of the Code of Virginia.
|
Prohibition on
Campaign Fundraising During Legislative Sessions,
§ 24.2-940 of the Code of Virginia.
|
The current Code of
Virginia is available on line at http://leg1.state.va.us
or http://legis.state.va.us. It
is updated annually on July 1.
|
Campaign Finance and
Disclosure
|
General Reference:
Office of the State Board of Elections
http://www.sbe.state.va.us/Campaign_Finance/
|
Virginia is a
disclosure state.
|
There are NO limits
on campaign contributions (individual, PAC or corporate) only
disclosure requirements.
|
Corporate Contributions
|
Corporations can give
directly to state and local candidates in Virginia in unlimited amounts.
|
Corporations do not
have to form PACs to make political contributions to Virginia
non-federal candidates or to Virginia PACs. (All federal races are, of
course, subject to FEC requirements.)
|
A corporate
contribution made from its operating funds, like an individual
contribution made from personal funds, is reported by the recipient
candidate or committee, but not by the contributor company.
|
Donated in-kind goods
or services constitute reportable contributions from a company.
|
For all contributions
in excess of $100 (individually or cumulatively), the candidate or
committee must report the full name and mailing address of the
contributor, the type of business, the principal place of business, and
the amount received. For in-kind contributions, the nature of the goods
or services and the basis for determining value must also be reported.
|
Discussion Points –
Political
Contributions
|
Example 1
A company makes office space available to a candidate or a political
committee. The fair market value of the space is $500 per month, but
the company only charges the candidate or the political committee $200.
The difference, $300, is a reportable in-kind contribution.
|
Example 2
A web page developer designs a web page for a candidate. The
developer’s normal fee for this service is $2,500.00 although he
doesn’t charge the candidate for the service. The candidate must report
an in-kind contribution of $2,500.00 and record the same amount as an
expense. If the web page developer then volunteers to answer phones or
go door to door for the candidate, things that are not usually services
he provides, the candidate does not have to report such services as
in-kind contributions.
|
Example 3
Company A wants to make a contribution to Candidate A but does not want
to be reported as having done so. Candidate B suggests that Company A
make a contribution to her leadership PAC with the promise that
Candidate B will then write a check from the PAC for the same amount to
Candidate A. Should the company go along with this arrangement?
|
Prohibition on
Contributions
During the Legislative Session
§ 24.2-940.
|
No member of the
Virginia General Assembly and no statewide official (Governor, Lt.
Governor, Attorney General) may solicit or accept a campaign
contribution while the General Assembly is meeting in regular session
(from the 2nd Wednesday in January until adjournment sine die).
|
No corporation,
individual or political committee may make or promise to make a
contribution to a General Assembly member or a statewide official
during the regular session of the General Assembly.
|
The prohibition
includes contributions to the campaign committees of such individuals
but does not extend to events held by political parties or political
committees.
|
Reporting Requirements/
Independent Expenditures
|
A corporation is
required to file a Statement of Organization and comply with reporting
requirements if it makes independent expenditures for communications in
excess of $200 in a calendar year expressly advocating the election or
defeat of a clearly identified candidate.
|
Any communication
advocating the election or defeat of a clearly identified candidate or
nominee must include an authorization statement indicating the person,
company or committee responsible.
|
This requirement now
extends to paid campaign phone calls made within a certain number of
days before an election if the calls convey or solicit information
regarding a candidate or political party. § 24.2-1014.
|
Reporting
Requirements/Political Committees (PACS)
|
Corporations (alone
or in combination with others) may choose to form political committees
to support state and local candidates.
|
If a company decides
to form a political committee, it must meet certain requirements:
|
| • |
File
a Statement of Organization |
|
1) |
within ten days
of making or anticipating making expenditures in excess of $200 or
receiving contributions; and
|
|
2) |
annually on
January 15 thereafter. |
| • |
File
disclosure reports on schedule required by State Board of Elections
(different for election and non-election years). May be a Report of No
Activity. |
| • |
File
a final report when the PAC seeks to end its existence. Excess funds
may be returned proportionally to contributors, given to another PAC or
campaign or to a charitable organization.
|
|
Note: Disclosure
reports may be filed electronically. Fines are imposed for failure to
file on time.
|
Lobbying Disclosure and
Regulation
|
General Reference:
Office of the Secretary of the Commonwealth
http://www.commonwealth.state.va.us:8000/lobbyist.htm
|
Registration Requirements
|
- Who is a
lobbyist?
|
You are a lobbyist if
1) you are employed and receive payments for the purpose of lobbying;
or 2) you contract for economic consideration, including reimbursement
of expenses, for the purpose of lobbying; or 3) you represent an
organization or association for the purpose of lobbying.
|
- What constitutes
lobbying?
|
You are lobbying if
you are influencing or attempting to influence legislative or executive
action through oral or written communication with an executive or
legislative official or if you are soliciting others to influence such
officials.
|
You are NOT lobbying
if you are 1) merely requesting an appointment or information on the
status of legislative or executive action; 2) responding to published
notices requesting public comment; 3) soliciting an association to
which you belong to influence legislative or executive action; or 4)
communicating with members of your association or with your principal.
|
- When do you
register?
|
You may begin
registering on May 1 for the following General Assembly Session.
|
You must register for
each principal that you represent prior to engaging in lobbying for
that principal.
|
Your registration
expires on May 1. You must register every year. There are no automatic
renewals.
|
- Are there any
exceptions to the registration requirement?
|
You do not have to
register as a lobbyist if your activities are limited to formal
testimony at public meetings or when compelled by action of a
legislative body or executive agency.
|
You do not have to
register if you receive $500 or less in compensation and reimbursements
in a calendar year for your lobbying activities.
|
You receive no
compensation or anything of value for lobbying and you spend $500 or
less in lobbying expenses.
|
You are an employee
of a business whose job does not regularly include influencing or
attempting to influence legislative or executive action.
|
- How do you
register?
|
You may register on
line at http://www.commonwealth.state.va.us:8000/lobbyist.htm
or by filing a registration form with the Secretary of the
Commonwealth, P.O. Box 2454, Richmond, VA 23218.
|
- How much does it
cost to register?
|
You must pay a fee of
$50 for each principal that you represent.
|
Lobbyist Disclosure
Statements
and other Reports
|
- What reports am
I
required to file as a registered lobbyist and when are they due?
|
You must file a
lobbyist disclosure statement on July 1 each year. You and your
principal may be fined for filing late.
|
You must send a
summary or copy of Schedule A or B of the disclosure statement to every
legislative or executive official who is identified on either schedule
twice each year: by July 1 for the period January 1 to May 1 and by
January 5 for the period May 1 through December 31.
|
- How do I file
the
disclosure report?
|
You may file on line
at http://www.commonwealth.state.va.us:8000/lobbyist.htm
or by filing a disclosure report with the Secretary of the
Commonwealth, P.O. Box 2454, Richmond, VA 23218.
|
- Who is
responsible
for filing the statement and for the information contained therein?
|
The signatures of
BOTH the lobbyist and the principal must be on the disclosure form.
Photocopy or faxed signatures not acceptable.
|
- What information
is included in the lobbyist disclosure report?
|
Names and addresses
of principal and lobbyist.
|
Description of
legislative and executive actions for which you lobbied and the
activities conducted.
|
Dollar amount of the
compensation received by the lobbyist or paid to the lobbying firm.
|
A total of all funds
spent on entertainment events and an itemized list of entertainment
events with a value over $50.00.
|
A total of all funds
spent on gifts and an itemized list of gifts valued at more than $25.00.
|
Any other lobbying
expenses.
|
- What are the
penalties for violating the disclosure requirements?
|
A lobbyist and his
principal are both liable for civil penalties for a failure to file on
time ($50 plus $50 per day beginning on the 11th day after the due
date).
|
A person who makes a
knowing material misstatement on the disclosure statement could be
guilty of a Class 5 felony ( 1 to 10 years imprisonment or 12 months in
jail and a fine up to $2,500.00, either or both).
|
Other violations of
the registration and disclosure act may be Class 1 misdemeanors (up to
12 months in jail and a fine up to $2,500.00, either or both).
|
Discussion Points –
Disclosure Requirements
|
| - Compensation |
You must decide how
much to report that you received for lobbying in Virginia and explain
how you arrived at the amount.
|
Example:
Your salary is $100,000. You spent 10 days in January and February
lobbying members of the legislature and 5 days during the rest of the
year lobbying members of the executive branch.
|
If you work full-time
as a lobbyist for your company, working 48 weeks per year at 5 days per
week that would be 240 days. $100,000 divided by that number of days =
$416.66 per day. 15 days x $416.66= $6,249.90.
|
- Meals and
Entertainment – Schedule A
|
Any entertainment
paid for or reimbursed by the principal and/or the lobbyist must be
disclosed.
|
The amount disclosed
should be the total amount expended by the principal or the lobbyist in
furnishing entertainment to a reportable guest.
|
If the cost of a
single event is greater than or equal to $50, Schedule A must be filed
with the lobbyist’s report.
|
If the average cost
per person in attendance exceeds $50, then the names of each reportable
guest must be specified.
|
-
Who
is a reportable guest?
|
| • |
The Governor;
the Lieutenant Governor; and the Attorney General. |
| • |
Officer or
employee of the Governor or Lt. Governor other than clerical employees. |
| • |
The Cabinet
Secretaries, and the Deputy Secretaries. |
| • |
The heads of
executive branch agencies. |
| • |
Members of
supervisory and policy boards, commissions and councils as defined in
§ 2.2-2100 of the Code of Virginia. |
| • |
Members and
members-elect of the General Assembly. |
| • |
A member of a
committee, subcommittee, commission or other entity established by and
responsible to the General Assembly. |
| • |
Employees of
the General Assembly or an entity established by and responsible to the
General Assembly. |
|
Example 1
You take a legislator out for coffee. The total bill is $10.00. This
amount must be included in your entertainment expenditure totals, but
Schedule A does not need to be completed.
|
Example 2
You take a legislator out to dinner with 2 other company
representatives or nonlegislative guests. The total bill for the 4 of
you is $175.00. You would include the amount in your entertainment
expenditure totals and itemize it on Schedule A, but you would not be
required to name the legislator on the form.
|
If the total bill for
the dinner for 4 is $201.00, however, you would have to name the
legislator on the form because the average cost per attendee was in
excess of $50.00 (i.e., $50.25).
|
- Gifts – Schedule
B
|
A gift is anything of
value to the extent that a consideration of equal or greater value is
not received.
|
Informational or
promotional materials are not gifts.
|
Total amounts spent
for gifts of any amounts must be included in your expenditure totals.
|
If a single gift to
an individual has a value greater than $25.00, it is must be itemized
on Schedule B (date, description, name of recipient and cost), unless
it is returned to you unused or donated to a charitable organization
within 60 days of receipt.
|
- Other Expenses –
Schedule C
|
You report total
expenditures for entertainment, gifts, office expenses, communications,
personal living and travel expenses, compensation of lobbyists,
honoraria, and registration costs on Part 1, section 6a-6h of the
disclosure form.
|
You itemize expenses
that are not included in these totals in Schedule C. Examples of such
expenses would be rental of a bill box at the General Assembly Building
and the fees for Lobbyist in a Box.
|
Expenditures for
“infrastructure” should be prorated among clients.
|
- What other
things
should I know about lobbying and hiring lobbyists?
|
Contingent
compensation is prohibited.
|
Records related to
lobbying must be kept for two years.
|
You may not hire
certain state officers or employees to represent you or act in a
representative capacity on behalf of any person or group, for
compensation, on any matter before the agency of which he was an
officer or employee. This includes any activities for which
registration as a lobbyist would be required. § 2.2-3104.
|
