1. SWEARING COMPLIANCE UNDER THE NEW FEDERAL LOBBYING LAW: ARE YOU READY? Larry Norton and Jim Kahl Womble Carlyle Sandridge & Rice PLLC Washington, D.C.

2. AGENDA I. NEW LOBBYING LAW  Overview II. THE NEW REPORT  Overview  Who Files  How to File III. COMPLETING THE LD-203 IV. QUESTIONS

3. HONEST LEADERSHIP & OPEN GOVERNMENT ACT OF 2007 Gift rules apply to private sectorGift rules apply to private sector Gift ban for registrants and individual lobbyistsGift ban for registrants and individual lobbyists Quarterly reportsQuarterly reports “Sarbanes-Oxley type” certification“Sarbanes-Oxley type” certification

4. COMPLIANCE WITH THE GIFT BAN Old Rule: $50/gift and $100/yearOld Rule: $50/gift and $100/year New Rule: No gifts from lobbyists, and organizations that employ or retain themNew Rule: No gifts from lobbyists, and organizations that employ or retain them Exceptions are available; must meet one of themExceptions are available; must meet one of them

5. WHAT IS A GIFT? Anything of valueAnything of value Meals, Hospitality, EntertainmentMeals, Hospitality, Entertainment Tickets to events, galas, games, dinnersTickets to events, galas, games, dinners Valuable commemorative items, such as expensive pens; designer desk accessories; wine/spirits; clothingValuable commemorative items, such as expensive pens; designer desk accessories; wine/spirits; clothing Transportation and lodgingTransportation and lodging

6. TOUGHER SANCTIONS Raised the stakesRaised the stakes Random AuditsRandom Audits Increased civil penaltiesIncreased civil penalties Felony – intentional violationsFelony – intentional violations

7. FORMAL SANCTIONS MAY NOT BE THE WORST THING THAT CAN HAPPEN Information is in the public domainInformation is in the public domain Will be scrutinized by press, competitors, and watchdog groupsWill be scrutinized by press, competitors, and watchdog groups Damage to reputationDamage to reputation

8. RISK MANAGEMENT Compliance ComplianceProgram Involve relevant personnel Involve relevant personnel Encourage questions Encourage questions

9. THE NEW FORM: LD-203 OVERVIEW Registrants and lobbyist must file separate reportsRegistrants and lobbyist must file separate reports Disclose political contributions and other expensesDisclose political contributions and other expenses Certify (registrant and lobbyist):Certify (registrant and lobbyist):  “read and familiar with” gift rules  “have not provided” gifts that violate House & Senate rules

10. FILING THE FORM Electronic filing requiredElectronic filing required Filing deadlinesFiling deadlines  July 30: covers Jan 1 to June 30  January 30: covers July 1 to Dec 31

11. HOW TO FILE: REGISTRANTS Access system using (https://ld.congress.gov:4433/LC/) & enter Senate user ID and passwordAccess system using (https://ld.congress.gov:4433/LC/) & enter Senate user ID and password System is interactive – create new filings, open saved filings, and amend a previous filingSystem is interactive – create new filings, open saved filings, and amend a previous filing One click - form is filed with House & SenateOne click - form is filed with House & Senate

12. HOW TO FILE: LOBBYISTS The registrant (i.e., employer) must verify lobbyist’s information – correct e-mail addressThe registrant (i.e., employer) must verify lobbyist’s information – correct e-mail address E-mail is automatically sent to individual lobbyistsE-mail is automatically sent to individual lobbyists Lobbyist verifies information & creates own account passwordLobbyist verifies information & creates own account password

14. BUT I DIDN’T LOBBY THIS YEAR... If you are “active” in the reporting period, you must file LD-203If you are “active” in the reporting period, you must file LD-203 If no longer employed as a lobbyist, must file for any reporting period for which you were activeIf no longer employed as a lobbyist, must file for any reporting period for which you were active

15. DIDN’T GET AN E-MAIL? Current or former employer did not activate your accountCurrent or former employer did not activate your account Contact and request activationContact and request activation Don’t want to contact old boss? Call the House Legislative Resource Center - 202-226-5200Don’t want to contact old boss? Call the House Legislative Resource Center - 202-226-5200

16. CAUTION! Registrant can add a new lobbyist on LD-203Registrant can add a new lobbyist on LD-203 Lobbyist can update own LD-203 account to reflect new employerLobbyist can update own LD-203 account to reflect new employer But -- neither change is effective until an LD-1 or LD-2, as appropriate, is filed by registrantBut -- neither change is effective until an LD-1 or LD-2, as appropriate, is filed by registrant

17. NEW OBLIGATIONS NEW INFORMATION Registrants and lobbyists disclose contributions and payments in separate filingsRegistrants and lobbyists disclose contributions and payments in separate filings New information: disclosure not previously requiredNew information: disclosure not previously required

18. DISCLOSURE OF POLITICAL CONTRIBUTIONS Political contributions $200 + to: Federal candidates and officeholdersFederal candidates and officeholders Political party committeesPolitical party committees Leadership PACsLeadership PACs Presidential librariesPresidential libraries Presidential inaugural committeesPresidential inaugural committees

19. DISCLOSURE OF NON- POLITICAL COSTS AND DONATIONS Event to honor or recognize covered leg/exec officialEvent to honor or recognize covered leg/exec official Entity named for covered leg officialEntity named for covered leg official Entity established, financed, maintained or controlled by covered leg/exec officialEntity established, financed, maintained or controlled by covered leg/exec official Entity designated by leg/exec officialEntity designated by leg/exec official Meetings held by or in the name of a covered leg/exec officialMeetings held by or in the name of a covered leg/exec official

20. WHO ARE COVERED LEGISLATIVE OFFICIALS? Members of CongressMembers of Congress Any employee of Member of Congress, committee of House or Senate, working group or caucus providing assistance to membersAny employee of Member of Congress, committee of House or Senate, working group or caucus providing assistance to members Elected officersElected officers Position described in Ethics in Government Act of 1978Position described in Ethics in Government Act of 1978

21. WHO ARE COVERED EXECUTIVE OFFICIALS? President and Vice-PresidentPresident and Vice-President Officer/Employee in Executive Office of the PresidentOfficer/Employee in Executive Office of the President Executive Schedule I-VExecutive Schedule I-V Uniformed Services above O-7Uniformed Services above O-7 Confidential or policy-making position (Schedule C)Confidential or policy-making position (Schedule C)

25. FECA CONTRIBUTIONS Contributions ≥ $200 to federal candidate or officeholder, leadership PAC, or political party committeeContributions ≥ $200 to federal candidate or officeholder, leadership PAC, or political party committee Date and amountDate and amount PAC contributions includedPAC contributions included Presidential inaugural committeesPresidential inaugural committees

26. TIPS FOR FECA CONTRIBUTIONS Contributions equal to $200 or greater (disclose to FEC only if over $200) Lobbyists who serve as PAC treasurers or on PAC boards

28. TIP – VERY BROAD READING OF “HONOR OR RECOGNIZE” PROVISION Costs of event where Member of Congress is speaker or panelist Cost of tickets for event where Member is identified on invitation, even as honorary co-host Local officials may be there, too

30. WHAT CATEGORY FITS? Ethics committees say must report honoree and amount of funds paid for a meeting, retreat, conference, or other similar event held by, or in name of, 1 or more covered leg/exec branch officialsEthics committees say must report honoree and amount of funds paid for a meeting, retreat, conference, or other similar event held by, or in name of, 1 or more covered leg/exec branch officials Is this a “meeting expense” or an “honorary expense?”Is this a “meeting expense” or an “honorary expense?”

31. IS SOMETHING MISSING? Payments to entities designated by or established, financed, maintained or controlled by covered personsPayments to entities designated by or established, financed, maintained or controlled by covered persons Not clear which category fitsNot clear which category fits

33. THE “READ AND IS FAMILIAR” REQUIREMENT LobbyistsLobbyists Non-LobbyistsNon-Lobbyists What kind of training?What kind of training? In what form?In what form? Making updates availableMaking updates available In-house or with outside supportIn-house or with outside support

34. WHO WILL CERTIFY FOR THE ORGANIZATION? Certification written entirely in the first personCertification written entirely in the first person Certifying on behalf of which employees?Certifying on behalf of which employees? No place on form to sign and take responsibilityNo place on form to sign and take responsibility

35. GOOD RECORDKEEPING IS ESSENTIAL Must disclose even nominal donations and event costsMust disclose even nominal donations and event costs Covers payments to all sources, including charities, schools, hotels, printers, other vendorsCovers payments to all sources, including charities, schools, hotels, printers, other vendors For each contribution, must report date, recipient, and amountFor each contribution, must report date, recipient, and amount Pre-approval systemPre-approval system

36. COMPREHENSIVE COMPLIANCE PROGRAM One size does not fit all!One size does not fit all! System to track legal developmentsSystem to track legal developments Regular training & materials updatedRegular training & materials updated

37. CONTACT INFO Larry Norton: (202) 857-4429 LNorton@wcsr.com Jim Kahl: (202) 857-4417 JKahl@wcsr.com Womble Carlyle Sandridge & Rice, PLLC Washington, D.C.