The federal government has seen an influx in calls for assistance as COVID-19 continues to impact every industry. Because of this, we have seen a need for Lobbying Disclosure Act (LDA) guidance which we highlight, below.
Specifically, there are four key risk areas that companies should be aware of:
1. Lobbying Registration.
Under the Lobbying Disclosure Act (LDA), a company must register and file reports for employees who are “lobbyists.” An employee is a lobbyist if they have made two or more federal lobbying contacts during employment, and they have spent at least 20% of their work time involved in lobbying actions over a three-month time frame.
2. What is the Two-Contact Threshold?
If someone has communicated in two ways (email, calls, etc.) with a covered government official on behalf of the company, they have satisfied the two-contact threshold. A contact can include a range of matters including policy, federal legislation, loans, nominations, or more.
Covered officials include the following:
- Congress members
- Congressional staff
- Officers/employees of the Executive Office of the President
- Senior leads in the executive branch
- Senior military officials
- Schedule C political appointees
Reporting Requirements.
Any company that registers as a lobbying organization must also report quarterly and semi-annually, including the following items (among others):
- The name of each company lobbyist
- Estimate of total lobbying costs
- The agency being lobbied and issues outlined
- Political contributions and gifts
3. Hiring an Outside Lobbying Firm.
When a company hires an outside lobbying firm, they should vet the firm for their compliance with lobbying, gift and political contribution regulations, and practices.
4. Gift Giving for Congress Members.
A gift is considered to be any food, drink, meal, event ticket, transportation, or other items of value. Gifts are restricted for Congress members and their staff under the LDA.
If you have any questions regarding the LDA, please contact Cook Craig & Francuzenko at (703)865-7480.
