Course Objectives and Overview

HARVARD UNIVERSITY JOHN F. KENNEDY SCHOOL OF GOVERNMENT

LOBBYING: THEORY, PRACTICE, AND SIMULATIONS aka Lobbying: Making or Breaking Policy Lobbying: The 4th Branch of Government Lobbying: How 12,000 People Spend $3.3 Billion Lobbying: Right to Petition v. Prohibition on Buying Legislation

DPI-351M SYLLABUS January 2015

Daily 9:00-6:00 January 6, 2015 – January 16, 2015

Instructor: Mark Fagan, T-379, 617-947-2586, [email protected]

Version: 4/4/2018 Course Objectives and Overview Lobbying is often called the 4th branch of government since this multi-billion dollar industry significantly impacts policy making. This intensive course provides the opportunity to understand the fundamentals of lobbying while learning first-hand about the lobbying efforts of advocacy groups covering energy, the environment and social welfare issues. Plan for a full day!

We have a speaker at lunch (12:00-1:00) each day to share first-hand practitioner experinces. There will be ample time for questions and discussion. You are welcome to eat during the session.

Mornings (9:30-11:30) will be devoted to discussing lobbying basics – history and current size/scale/scope, value proposition, strategies and toolkit, regulations, players, scandals, etc. – through acedemic and practioner readings. The understanding of lobbying will be enhanced through lunchtime speakers – lobbyists, legislators, and acedemics.

The afternoons (1:00-6:00) will be spent learning about the advocacy efforts of local organizations and role playing lobbying meetings on their behalf. The lobbying sessions will be conducted with former legislators to add realism to the experience. As part of that process the

1 students will (1) determine who to target and the message to deliver; (2) hold the session; and (3) provide follow-up materials. The simulations will be videotaped and debriefed.

To increase the understanding of the business of lobbying, the students will develop a business plan for a lobbying firm, solicit seed funding, and develop a sales pitch for a target client. The advocacy issue is natual gas extraction using hydraulic fracturing.

At the end of the course the students will have a working knowledge of lobbying practices from the perspective of the “lobbyer” and “lobbyee” as well as gained experience in developing a simulated lobbying deliverable.

Course Outline The major topics covered in this course are:  History of Lobbying We begin with a look at the right to petition from King Solomon to President Obama.  The Lobbying Industry This section begins with the value proposition offered by the lobbyists and the return on investment they have provided. Next we will explore the industry’s size, scale and major players, both lobbyers and lobbyees. Finally, we will look at key industry trends.  Regulation, Enforcement and Ethics Lobbying is a study in tension between the First Amendment right to petition the government and prohibitions against buying legislation. In this area we will look at the evolution of lobbying regulation. We will also cover the ethical boundaries that guide lobbyists and the seemingly endless examples of where the norms are violated. We will grapple with establishing bright line tests where the subject is inherently gray. Most importantly we will cover the “dos and don’ts” of lobbying.  Psychology and Lobbying Strategies How does the lobbyist influence decision-making? What is the role of psychology in establishing lobbying strategies? This section provides an overview of why and how lobbying is effective and where it may fail. We will explore analysis of lobbying’s effectiveness and look to find guidelines to enhancing the “bang for the lobbying buck.” We will also explore the implications of lobbying in the Internet age.  A Day-in-the-Life of a Lobbyist How do lobbyists spend their time? How much is high power meetings with key decision-makers versus endless hours of research? We will also look at the career paths that individuals have taken to become effective lobbyists and what personal characteristics and toolkits have enables their success.  Lobbying Across the Globe Lobbying, often referred to as advocacy in other countries, is present around the globe. However, the impact of lobbying and the rules of the game vary widely. In this final section we will explore lobbying across borders and within select countries/regions (e.g. EU, China, Japan)

Audience The course will serve legislative and agency staffers, politicians, aspiring lobbyists, NGO leaders and anyone in the policy analysis space.

2 Pedagogy The course is taught through practice. The daily routine will be learning theory and tools in the morning and applying the concepts to client advocacy objectives in the afternoon. The morning instruction will come via lectures and class discussions. Most days a lunchtime speaker will bring the practitioners perspectives to the class. The afternoons are for learning about how local environmental/energy organizations advocate and honing students lobbying skills through simulations.

Professionalism Lobbying is a profession. Success is predicated in part on your professionalism. We will practice what we preach. You are expected to abide by the University policies on academic honesty and integrity. Violations of these policies will not be tolerated and are subject to severe sanctions up to and including expulsion from the university. You need to be at every class, on time. (If you will not be in class, email me in advance.) Also, while we will periodically use digital technology in during class, as a general rule, the classroom sessions will be laptop/phone/tablet free.

Requirements and Grading

Final Paper – 40% At the end of the course you will write a 2,500-word paper reflecting on a particular aspect of lobbying that you find interesting, surprising or especially challenging. The paper is based on research, class experience, and your own insights.

Lobbying Simulations – 35% Each student will participate in a lobbying simulation (on behalf of your client or your mock firm. The simulations will be evaluated by the lobbyee, instructor and your classmates.

Class Participation – 25% The participation grade is a function of contributions to class discussion, asking questions of our guest speakers (a bonus for the first question), feedback to your peers on lobbying simulations and completing one mini-assignment (drafting an ideal lobbyist resume or creating a positive cartoon about lobbying). Attendance is also a component of your participation grade. More that 1 excused absence and/or late arrival will result in a significant reduction in your grade.

I will assign grades according to the following HKS-recommended distribution: A: 10-15 percent A- 20-25 percent B+ 30- 40 percent B 20-25 percent B- or below 5-10 percent

3 CLASS SCHEDULE ( PRELIMINARY, SUBJECT TO CHANGE )

Pre-Read: The Art of Lobbying by Bertram Levine (CQ Press) – it is a quick read that provides great context for your client work.

1. Tuesday January 6, 2015

History of Lobbying from King Solomon to President Obama Discussion Topics: 1. Definition of lobbying 2. Genesis and evolution of right to petition 3. Rationale for lobbying 4. Concerns about lobbying

Required Readings:  Lobbying: Business, Law and Public Policy, Mark Fagan, Vandeplas Publishing, 2014, Chapter 1.  “Lobbying as Legislative Subsidy”, Hall, Richard and Alan Deardorff, The American Political Science Review, Vol. 100, No. 1 (Feb., 2006), pp. 69-84. http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/27644332  “Lobbyists”, Chapters 1 and 2, Byrd, Robert, U.S. Senate, updated 1989. http://www.senate.gov/legislative/common/briefing/Byrd_History_Lobbying.htm

Supplementary Readings:  U.S. Constitution, First Amendment.  “King of the Lobby”, Jacob, Kathryn Allamong, Smithsonian, 32(2), 122. http://ezp- prod1.hul.harvard.edu/login?url=http://search.ebscohost.com/login.aspx? direct=true&db=aph&AN=4367876&site=ehost-live&scope=site  Executive Order 13490, President Obama, January 2009. http://edocket.access.gpo.gov/2009/pdf/E9-1719.pdf  “Protecting the Right to Petition: Why a Lobbying Contingency Fee Prohibition Violates the Constitution”, Fatka, Stacie and Jason Levien. http://heinonline.org/HOL/Page? handle=hein.journals/hjl35&div=29&g_sent=1&collection=journals  “Federal Policy Activity and the Mobilization of State Lobbying Organizations”, Baumgartner et al, Political Research Quarterly 2009; 62; 552 originally published online Sep 29, 2008. http://www.unc.edu/~fbaum/articles/PRQ-baum-gray-lowery- 2009.pdf

2. Wednesday January 7, 2015

The Lobbying Industry Discussion Topics: 1. Size and scale of the lobbying industry 2. Federal versus state and local lobbying 3. Issue coverage 4. Industry segmentation and key firms/players 5. Growth trends and rationale 6. Return of investment 4 Required Readings:  Lobbying: Business, Law and Public Policy, Mark Fagan, Vandeplas Publishing, 2014, Chapter 2.  “Drawing Lobbyists to Washington: Government Activity and the Demand for Advocacy”, Leech et al, Political Research Quarterly, Vol. 58, No. 1 (Mar., 2005), pp. 19-30. http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/3595592  “Interest Niches and Policy Bandwagons: Patterns of Interest Group Involvement in National Politics”, Baumgartner, Frank and Beth Leech, The Journal of Politics Vol. 63, No. 4 (Nov., 2001), pp. 1191-1213. http://www.jstor.org.ezp- prod1.hul.harvard.edu/stable/2691812

Supplementary Readings:  Lobbying Database, OpenSecrets.org, Center for Responsive Politics. http://www.opensecrets.org/lobby/index.php  “Lobbying and Taxes”, Richter et al., American Journal of Political Science Vol. 53, No. 4 (Oct., 2009), pp. 893-909. http://www.jstor.org.ezp- prod1.hul.harvard.edu/stable/20647957  Interest Group Competition Federal Agency Rules, McKay, Amy and Susan Yankee, American Politics Research 2007 35: 336. http://apr.sagepub.com.ezp- prod1.hul.harvard.edu/content/35/3/336.full.pdf+html  Night Vision Goggles, Carmen Group, http://www.carmengroup.com/defense/case- histories

3. Thursday January 8, 2015

Regulation and Enforcement Discussion Topics: 1. History and rationale for regulation 2. Evolution of regulations 3. Current “dos” and “don’ts” 4. Enforcement agencies and their effectiveness

Required Readings:  Lobbying: Business, Law and Public Policy, Mark Fagan, Vandeplas Publishing, 2014, Chapter 3.  History of the Lobbying Disclosure Act, Public Citizen, LobbyingInfo.org, 7/26/05. http://www.cleanupwashington.o rg/lobbying/page.cfm?pageid=38  Honest Leadership and Open Government Act of 2007. http://www.gpo.gov/fdsys/pkg/PLAW-110publ81/content-detail.html

Supplementary Readings:  “Lobbying Congress: An Overview of Legal Provisions and Congressional Ethics Rules”, Maskell, Jack, Congressional Research Service, March 2010. http://assets.opencrs.com/rpts/RL31126_20010914.pdf

5  “Lobbying the Executive Branch: Current Practices and Options for Change”, Straus, Jacob, Congressional Research Service, July 2010. http://fpc.state.gov/documents/organization/133502.pdf  Lobbying Disclosure Act Guidance, U.S. Senate, Revised June 15, 2011. http://www.senate.gov/legislative/resources/pdf/S1guidance.pdf

4. Friday January 9, 2015

Ethics and Endless Scandals Discussion Topics: 1. Perpetual scandals 2. Ineffective responses 3. Industry self-regulation

Required Readings:  Lobbying: Business, Law and Public Policy, Mark Fagan, Vandeplas Publishing, 2014, Chapter 4.

Supplementary Readings:  So Damn Much Money, Robert Kaiser, Alfred Knopf, 2009, pp. 3-24.  “The Law and Ethics of K Street”, Ostas, Daniel, Business Ethics Quarterly, 17, 1, 2007, pp. 33-63. http://ezp-prod1.hul.harvard.edu/login? url=http://search.ebscohost.com/login.aspx? direct=true&db=bth&AN=23547491&site=ehost-live&scope=site  Code of Ethics, American League of Lobbyists. http://www.alldc.org/ethicscode.cfm

5. Saturday January 10, 2015

Citizens United: Two Years Later Discussion Topics: 1. What was the rationale for the Citizens United decision? 2. What impact has it had on elections? 3. What impact has it had on lobbying?

Required Readings:  Citizens United Decision and Dissent http://www.supremecourt.gov/opinions/09pdf/08- 205.pdf

6. Monday January 12, 2015

Lobbying Psychology, Strategies, and Success Discussion Topics: 1. Psychology of lobbying 2. Range of strategies and selection criteria 3. Effectiveness of lobbying

Required Readings:

6  Lobbying: Business, Law and Public Policy, Mark Fagan, Vandeplas Publishing, 2014, Chapters 5 and 6.  “Does Money Buy Power?”, Interest Group Resources and Policy Outcomes, Leech et al, Midwest Political Science Association, 2007. http://www.unc.edu/~fbaum/papers/MPSA_2007_Does_Money_Buy_Power.pdf  “A Lobbying Approach to Evaluating the Sarbanes-Oxley Act of 2002”, Hochberg et al., Journal of Accounting Research, Vol. 47 No. 2 May 2009. http://www.kellogg.northwestern.edu/faculty/vissing/htm/jar_journal.pdf  “Washington: The Real No-Spin Zone”, Berry, Jeffrey and Baumgartner et al, 2007. http://lobby.la.psu.edu/_documentation/APSA_2007_no-spin-zone.pdf  “Tax-Exempt Organizations and the Internet, Part 2”, Segal, Amy, The Practical Tax Lawyer, Spring 2000. http://www.capdale.com/tax-exempt-organizations-and-the- internet-part-2  “Choosing Battlegrounds: Interest Group Lobbying Across Multiple Venues”, Holyoke, Thomas, Political Research Quarterly, Vol. 56, No. 3 (Sep., 2003), pp. 325-336. http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/3219792

Supplementary Readings:  So Damn Much Money, Robert Kaiser, Alfred Knopf, 2009, pp. 98-113  “Congressional Voting on DR-CAFTA: the Ineffectiveness of Environmental Lobbying”, Abettti, Pauline, Journal of Economic Policy Reform, Vol. 11, No. 1, March 2008, 11-20. http://ezp-prod1.hul.harvard.edu/login? url=http://search.ebscohost.com/login.aspx? direct=true&db=bth&AN=34478153&site=ehost-live&scope=site  “Allocating Lobbying Resources between Collective and Private Rents”, Godwin, Lopez, and Seldon, Public Research Quarterly, Volume 61, Number 2, June 2008, 345-359. http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/20299737  “New Evidence of the Theory of Groups, Trade Associations Lobbying in Washington”, D.C., Drope and Hansen, Political Research Quarterly, Volume 62, Number 2, June 2009, 303-316. http://www.jstor.org/stable/27759869  “Green taxes: Refunding Rules and Lobbying”, Aidt, Toke, Journal of Environmental Economics and Management, 60 (2010) 31-43. http://www.eprg.org.uk/faculty/aidt/papers/web/JEEM_2010.pdf  “Corporate Strategy, Corporate Capture: Food and Alcohol Industry Lobbying and Public Health”, Miller, David and Claire Harkins, Critical Social Policy, 30 (4) 2010. http://strathprints.strath.ac.uk/27874/1/HarkinsCSP376805.pdf

7. Tuesday January 13, 2015

Healthcare Case Study Discussion Topics: 1. History of the healthcare debate 2. Role of lobbying 3. Lobbying’s impact 4. Return on investment 5. Fracking: Introduction to creating a lobbying firm

Required Readings: 7  “A Brief History: Universal Health Care Efforts in the US”, Palmer, Karen, Spring 1999. http://www.pnhp.org/facts/a_brief_history_universal_health_care_efforts_in_the_us.php  “Lobbyist Campaign for Their Health Care ‘Reform’”, NPR Morning Edition, September 2, 2009. http://www.npr.org/templates/story/story.php?storyId=112460630  “The Max Baucus Health Care Lobbyist Complex”, Blumenthal, Paul, Sunlightfoundation.com, June 22, 2009. http://sunlightfoundation.com/blog/2009/06/22/the-max-baucus-health-care-lobbyist- complex/  “The State Legislators Guide to Repealing Obamacare”, American Legislative Exchange Council, 2011. http://www.alec.org/AM/pdf/hhs/State_Leg_Guide_to_Repealing_ObamaCare.pdf

Supplementary Readings:  “Lobbyists Swarm Capital to Influence Health Reform”, Eaton, Joe and M.B. Pell, The Center for Public Integrity, February 24, 2010. http://www.iwatchnews.org/2010/02/24/2725/lobbyists-swarm-capitol-influence-health- reform  “The Public’s Health Care Agenda for the 112th Congress”, Harvard School of Public Health and the Kaiser Family Foundation, January 2011. (Course Packet)  “What Health System Reforms Means to Physicians and Patients”, American Medical Association, 2010. http://www.ama-assn.org/ama1/pub/upload/mm/399/hsr-booklet.pdf  “Lobbying, Campaign Contributions, and Health Care Reform”, Steinbrook, Robert, New England Journal of Medicine, 2009. http://www.nejm.org.ezp- prod1.hul.harvard.edu/doi/full/10.1056/NEJMp0910879  “On the Nature and Strategies of Organized Interests in Health Care Policy Making”, Contandriopoulos, Damien, Administration & Society 43 (1). http://aas.sagepub.com.ezp- prod1.hul.harvard.edu/content/43/1/45.full.pdf+html

8. Wednesday January 14, 2015

Lobbying Across the Globe Discussion Topics: 1. How do foreign interests lobby in the US? 2. Whose interest is served? 3. What restrictions exist? What restrictions should exist? 4. Are you concerned? 5. What is the role of lobbying in other countries? 6. What is the impact of culture on lobbying? 7. What insight does lobbying in other countries offer for the US?

Required Readings:  Lobbying: Business, Law and Public Policy, Mark Fagan, Vandeplas Publishing, 2014, Chapters 7 and 10.  Registration Statement Pursuant to the Foreign Agents Registration Act of 1938, as amended, U.S. Department of Justice, FORM NSD-1. http://www.fara.gov/forms/2011/OMB_1124_0001.pdf  Lobbying Rules: Foreign Agents Registration Act, Public Citizen. http://www.citizen.org/documents/FARA.pdf 8  “International Influence: Agents of Foreign Clients Report Thousands of Lobbying Contacts, Millions in Fees”, Narayanswamy, Anupama, Sunlight Foundations, December 2, 2010. http://reporting.sunlightfoundation.com/2010/top-players-2009/  “Special Report: How Lobbyists Rewrite Europe’s Laws”, O’Donnell, John, Reuters Canada, March 18, 2011. http://ca.reuters.com/article/topNews/idCATRE72H21K20110318  “ALTER-EU Demands Ethic and Transparency Reforms in the Wake of the Cash-for- Influence Scandal”, The Alliance for Lobbying Transparency and Ethics Regulation, April 11, 2011. http://www.alter-eu.org/documents/2011/04/11/alter-eu-demands-ethics- and-transparency-reforms Supplementary Readings:  “Foreign Lobbies and US Trade Policy”, Kishore Gawande et al, NBRE Working Paper 10205, January 2004. http://www.kita.net/biz/html/ny/ny_info_atta/868_2_NBER %20Paper.pdf  http://www.kita.net/biz/html/ny/ny_info_atta/868_2_NBER%20Paper.pdf  “Deliberative Democracy and Advocacy: Lessons from a Comparative Perspective”, de Brelaz, Gabriela and Mario Alves, Canadian Journal of Administrative Sciences, 2011, 202-216. http://onlinelibrary.wiley.com.ezp- prod1.hul.harvard.edu/doi/10.1002/cjas.206/pdf  “European Union Lobbying Post-Lisbon: An Economic Analysis”, Hauser, Henry, Berkeley Journal of International Law, Vol. 29:2, 2011. http://www.boalt.org/bjil/documents/Hauser_Macro3.pdf  “Comparing Formal and Informal Lobbying Practices in China”, Kennedy, Scott, China Information, 2009 23: 195. http://cin.sagepub.com.ezp- prod1.hul.harvard.edu/content/23/2/195.full.pdf+html  “Capture or Exchange? Business Lobbying in Russia”, Frye, Timothy, Europe-Asia Studies, Vol. 54, No. 7 (Nov., 2002), pp. 1017-1036. http://www.jstor.org.ezp- prod1.hul.harvard.edu/stable/826304

Movie Night: Promised Land (pizza and salad provided, bring your own beverage)

9. Thursday January 15, 2015

Lobbying Regulators Discussion Topics: 1. Why lobby regulators? 2. How is lobbying regulators different from elected officials? 3. What are the most power strategies for lobbying regulators? 4. Fracking: Pitching your firm for funding

Required Readings:  “Oil, gas execs lobbying the regulators”, Dloughy, Jennifer, StarTribune Business, March 17, 2011. http://www.startribune.com/business/118194429.html?refer=y  “Derivatives Lobby Has U.S. Regulators on the Run”, Bloomberg, Lowenstein, Roger, April 17, 2012. http://www.bloomberg.com/news/2012-04-17/derivatives-lobby-has-u-s- regulators-on-the-run.html 9 10. Friday January 16, 2015

The Future of Lobbying Discussion Topics: 1. Demand and supply for lobbying services 2. Evolving requirements 3. Accompanying regulatory environment 4. Outlook for ethical behavior 5. Fracking: Pitching to a potential client

Readings:  None

Final Papers Due, January 19th at 5pm