HR4975APR28

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Week Ending April 28, 2006

H.R.4975 To provide greater transparency with respect to lobbying activities, and for other purposes.

The bill inches further towards reform than the last one passed by the House that only excluded lobbyist from House exercise areas. This one takes on some elements of the Senate bill regarding prohibitions and disclosure by lobbyists and legislators.

Under Title I, Enhancing Lobbying Disclosure, the bill would require lobbyists to file quarterly, reports of disclosure of contributions and gifts in a fashion that makes the information available to the public over the Internet. Lobbyists with a background of employment in the Executive and Legislative branches in the past 7 years must disclose that fact. Gifts are defined as “The term `gift' means a gratuity, favor, discount, entertainment, hospitality, loan, forbearance, or other item having monetary value. The term includes gifts of services, training, and meals whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred”.

Penalties for non-compliance can run to $100,000.

Title II is called “Slowing the Revolving Door” requires Members who are negotiating for a paid compensation job with or through an entity attempting to lobby the Member to notify the House within five days of beginning the negotiations and to avoid conflict or interest or the appearance of such. The Member must refrain from voting on legislation that might create the conflict or appearance of one. Members are prohibited from influencing (on a partisan basis) the hiring decisions of a lobby entity or the lobby client. Specifically the Member is prohibited from taking official action or threatening to take official action to influence a hiring decision.

Title III prohibits Members from accepting “a gift of travel (including any transportation, lodging, and meals during such travel) from any private source.” But a study, to be completed by December 15, 2006, is ordered that will explore how Members might accept travel gifts, their use and abuse in the past, from whom the gifts may come and who might join in the travel. For now the bill would prohibit registered lobbyists from traveling on flights as passenger or crew members of aircrafts not licensed by the FAA to operate for compensation or hire if a Member or staff is on the flight. Gifts in general would be included in the December 15 study review the details of banning or not banning them. A gift of tickets to sporting events or entertainment events shall be declared at the face value of the ticket.

The House Office of Inspector general is ordered to randomly audit lobbyist’s disclosure information.

The bill takes on so-called ‘earmarks’ or projects and provisions included in bills by a specific legislator for specific funding for a targeted project involving a non-federal entity that may or may not be related to the overall purpose of the bill. The provision governs appropriation bills by making it out of order to consider the bill if it contains earmarks if they are not listed in the bill’s accompanying reports or Manager’s joint explanatory statements on the bill and do not name the legislator requesting the earmark.

Earmarks may continue unabated under the bill, however, due to the definition given in the bill that says State, local or tribal governments, although non-federal entities can receive earmarks if the provision proposed or the language does not specify the specific purpose for which the money is to be expended.

New congressional staff members must take an ethics training class within 30 days of beginning employment. The bill notes that it is probably unconstitutional to require that Members take the ethics classes because it adds a qualification for service but the Members are urged to take the class. An ethics manual updated twice yearly is ordered.

The rule governing debate of this bill also required including, if this bill is passed, the text of the previously passed bill HR 513. HR 513, passed by the House on April 6, 2006 defines and regulates donations to 527 organizations. 527’s are named after the tax code under which they are organized and have the purpose of supporting issues and creating grassroots campaign efforts among other things. The law allows for unlimited donations to 527’s as opposed to very limited amounts that individuals and organizations can make to individual candidates and their umbrella organizations such as the Republican National Committee and the Democratic National Committee.

The bill rounds out with a provision that proposes forfeiture of a Members retirement benefits if convicted of certain offenses after the date of enactment of this bill. The offenses were listed as bribery of public officials and witnesses, violations of officers and employees acting as agents of foreign principals, conspiracy to commit offense or to defrauds the United States. But the bill specifically removes eligibility to participate in the retirement system after conviction ‘while serving as a Member’ and goes on to allow for lump sum payments with interest adjustments and may include payments to the spouse and children of the convicted Member.

Sponsor: Rep. David Dreier (R-CA-26^th)

Vote: A vote on the rule with which to debate this bill (HRES 783) passed on April 27, 2006 216 to 207 (RC 110) paving the way for consideration in the near future.

Cost to the taxpayers: “CBO estimates that implementing H.R. 4975 would cost about $2 million in fiscal year 2007 and $1 million a year in subsequent years, subject to the availability of appropriated funds. Enacting the bill would increase governmental receipts and direct spending from new violations of campaign finance laws, but CBO estimates that those effects would not be significant.”

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