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CQR Regulating Lobbying Published by CQ Press, an Imprint of SAGE Publications, Inc. www.cqresearcher.com Regulating Lobbying Do current laws have too many loopholes? obbying is undergoing a transformation. Once seen mainly as glad-handing influence peddlers buttonholing lawmakers in Capitol corridors, federal government L lobbyists today face multiple challenges: A gridlocked Congress, an end to special-interest funding provisions known as earmarks that once created big business for lobbyists and an Obama administration that has taken steps to curtail their access and influence. Increasing numbers of lobbyists are calling them - selves “strategic advisers” effectively to skirt a 2007 law enacted in Bruce Josten is chief lobbyist for the U.S. Chamber of response to the Jack Abramoff lobbying scandal. Since then, Commerce, which has become a powerhouse in American politics. During the 2010 election cycle, it spent nearly $33 million on election-related ads and Congress has shown little interest in closing loopholes in lobbying other communications. Most Chamber money supports Republican candidates or opposes Democrats. laws, and many observers predict it will take another major scandal for any action to occur. Meanwhile, lobbyists are forming closer alliances with public relations firms and other entities while trying to better explain the breadth of their services. Yet the industry I continues to fight an image problem: In a 2013 poll, lobbying THIS REPORT N scored lowest among 22 professions on honesty and ethics. THE ISSUES ....................483 S BACKGROUND ................490 I CHRONOLOGY ................491 D CURRENT SITUATION ........496 E CQ Researcher • June 6, 2014 • www.cqresearcher.com AT ISSUE ........................497 Volume 24, Number 21 • Pages 481-504 OUTLOOK ......................499 RECIPIENT OF SOCIETY OF PROFESSIONAL JOURNALISTS AWARD FOR BIBLIOGRAPHY ................502 EXCELLENCE N AMERICAN BAR ASSOCIATION SILVER GAVEL AWARD THE NEXT STEP ..............503 REGULATING LOBBYING June 6, 2014 THE ISSUES OUTLOOK Volume 24, Number 21 Interest-Group Gridlock MANAGING EDITOR: Thomas J. Billitteri • Do current laws sufficiently [email protected] 483 regulate lobbying? 499 Experts predict lobbying will • Do lobbyists move in and become more sophisticated. ASSISTANT MANAGING EDITORS: Maryann out of government too easily? Haggerty, [email protected], Kathy Koch , [email protected] • Does lobbyists’ money have too much influence on SIDEBARS AND GRAPHICS SENIOR CONTRIBUTING EDITOR: policymaking? Thomas J. Colin Finance, Health Sectors [email protected] 484 Spent Most on Lobbying CONTRIBUTING WRITERS: Brian Beary, BACKGROUND Top sectors each spent more Marcia Clemmitt, Sarah Glazer, Kenneth Jost, than $480 million in 2013. Reed Karaim, Peter Katel , Robert Kiener, “Lobby Agents” Barbara Mantel, Tom Price, Jennifer Weeks 490 Fewer Lobbyists, But Scandals earned lobbyists a 485 SENIOR PROJECT EDITOR: Olu B. Davis poor reputation during the Spending Still High 1800s and early 1900s. Hidden spending by “shadow EDITORIAL ASSISTANT: Ethan McLeod lobbyists” may be reason. FACT CHECKERS: Eva P. Dasher, Watergate Reforms Michelle Harris, Nancie Majkowski 493 Post-Watergate reforms de - 486 Lobbying Group Defends centralized party leadership, Name Change INTERN: Kaya Yurieff creating more opportunities Lobbyists today “have so for lobbyists. many more responsibilities.” Scandals Erupt 488 Congressional Aides 495 A 2006 scandal involving Return as Lobbyists More GOP than Democratic lobbyist Jack Abramoff An Imprint of SAGE Publications, Inc. pushed Congress to overhaul former aides registered as lobbying regulations. lobbyists in recent years. VICE PRESIDENT AND EDITORIAL DIRECTOR, HIGHER EDUCATION GROUP: Chronology Michele Sordi 491 Key events since 1829. CURRENT SITUATION EXECUTIVE DIRECTOR, ONLINE LIBRARY AND REFERENCE PUBLISHING: Regulation Sought for Todd Baldwin 496 Inaction by Congress 492 “Political Intelligence” Legislators who have intro - Copyright © 2014 CQ Press, an Imprint of SAGE Pub - duced bills restricting lobbying But critics see constitutional and other problems. lications, Inc. SAGE reserves all copyright and other have received little support. rights herein, unless pre vi ous ly spec i fied in writing. No part of this publication may be reproduced Court Decisions 497 At Issue: 496 Two recent rulings challenge Is President Obama unfair to electronically or otherwise, without prior written restrictions on appointments lobbyists? permission. Un au tho rized re pro duc tion or trans mis - and political contributions sion of SAGE copy right ed material is a violation of federal law car ry ing civil fines of up to $100,000. from lobbyists. OR URTHER ESEARCH F F R CQ Press is a registered trademark of Congressional Executive Branch Quarterly Inc. 496 President Obama continues 501 For More Information to criticize lobbyists’ role in Organizations to contact. CQ Researcher (ISSN 1056-2036) is printed on acid- policymaking. free paper. Pub lished weekly, except: (March wk. 4) 502 Bibliography (May wk. 4) (July wk. 1) (Aug. wks. 3, 4) (Nov. wk. State Actions Selected sources used. 4) and (Dec. wks. 3, 4). Published by SAGE Publica - 498 Lawmakers are debating tions, Inc., 2455 Teller Rd., Thousand Oaks, CA 91320. whether to restrict legislators 503 The Next Step Annual full-service subscriptions start at $1,054. For from receiving gifts and Additional articles . pricing, call 1-800-818-7243. To purchase a CQ Re - lobbying right after leaving searcher report in print or electronic format (PDF), office. 503 Citing CQ Researcher visit www.cqpress.com or call 866-427-7737. Single Sample bibliography formats. reports start at $15. Bulk purchase discounts and electronic-rights licensing are also available. Periodicals postage paid at Thousand Oaks, California, and at additional mailing offices . POST MAST ER: Send ad dress chang es to CQ Re search er , 2300 N St., N.W., Suite 800, Cover: AP Photo/Susan Walsh Wash ing ton, DC 20037. 482 CQ Researcher Regulating Lobbying BY CHUCK MCCUTCHEON The outside game, he says, in - THE ISSUES cludes “forming coalitions, get - ting third parties to augment early a decade ago, your research or your eco - presidential candidate nomic arguments” and coor - N Howard Dean thrilled dinating media coverage Democrats with his vow to through opinion articles, such stand up to the special inter - as Dean’s Wall Street Journal ests in Washington. Lately, column. however, some Democrats Even the word “lobbying” have been accusing him of is considered passé. The Amer - lobbying on behalf of those ican League of Lobbyists — same interests. the main trade organization Although not a registered for the influence industry — lobbyist, Dean is a “senior strate - changed its name last fall to gic adviser” at McKenna, Long the Association of Government & Aldridge, a Washington law Relations Professionals. ( See y firm that lobbies on behalf of d sidebar, p. 486. ) And, the tra - r e V health care and pharmaceuti - ditional practice of “relation - e r cal companies. Last July, i n a r ship lobbying,” based on head- e i Wall Street Journal column, he P to-head meetings to try to / s criticized a cost-control panel e persuade elected officials, “is g set up as part of President a dead, or at least not where m I y Obama’s health-care overhaul. t the growth will be” in the fu - t e Left-leaning publications re - G ture, predicted Carter Eskew, / buked him: “Dean has found P founding partner of the lob - F a home in the K Street estab - A bying and public relations firm lishment he once held in such Howard Dean, a former presidential candidate and Glover Park Group. 4 chairman of the Democratic National Committee, is now a disdain,” wrote The New Re - “senior strategic adviser” for a Washington law firm that Instead, Rehr says, lobby - public , referring to the down - lobbies for health care and drug companies. Increasing ing now requires a broader town area where many lob - numbers of lobbyists are calling themselves advisers to set of skills, the kind that bying firms are located. 1 skirt a 2007 law passed in response to the Jack Abramoff public relations firms possess. Dean told Time : “I dare lobbying scandal. There are now more such unregistered “Lobbyists and public relations “shadow lobbyists” in Washington than registered say some of the clients think lobbyists. Congress has shown little interest in recent professionals no longer work [the column] is great, but I years in closing loopholes in lobbying laws. in silos,” said an invitation to don’t write stuff because the a recent Public Relations So - clients like it. I write stuff because I out registering as lobbyists or having ciety of America event. “Instead, we are believe it.” 2 to formally disclose their contacts and expected to offer integrated services But one of Dean’s drug company income. The result, say government and bottom-line results in a seamless clients told the publishing company watchdogs, is a shadow world of manner .” 5 BioCentury that Dean had been “very lobbying that taxpayers know little And lobbying does produce big helpful” in his firm’s efforts to loosen about and that creates a potentially bottom-line results. In 2012 and 2013, federal regulations on drug develop - ripe environment for abuse. for instance, Whirlpool Corp. invested ment. Another said Dean “has been a “Today, to be really effective, a lobby - $1.8 million in lobbying for legislation great addition to our team.” 3 ist not only has to be thinking about to create energy tax credits for mak - Dean’s situation offers a window the inside game — going to Capitol Hill ing high-efficiency appliances — cred - into the ongoing transformation of the — but the outside game,” says David its worth an estimated $120 million. 6 lobbying industry in Washington. In - Rehr, a former lobbyist who now stud - And a 2009 study found that for every creasingly, its practitioners are trying ies the industry as an adjunct professor dollar spent on lobbying for a 2004 to influence the opinions of the pub - at George Washington University’s Grad - bill that provided tax breaks for large lic, the regulators and politicians with - uate School of Political Management.
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