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Lobbying, Ethics, and Earmark Reform
United States Senate and House Lobbying Reform Bills
The new congressional Democratic majority promised during the 2006 election campaigns to tackle a handful of key issues in the first two weeks of the 110th Congress. That promise began to take form on January 4th as House Democrats advanced a rules and legislative package addressing these issues. Out of the box first were a host of rules changes addressing lobbying and ethics reform which passed the House by a vote of 430-1. A summary of those rules changes follows.
NCSL has no official position regarding these changes, but modifications to the legislative process involving earmarks for special projects will indirectly affect states. Earmarks in appropriations measures generally consume billions in domestic discretionary funding available for state-federal partnerships and other programs. The rules package advanced by House Democrats requires more disclosure and transparency than current practice, thereby potentially tempering the amount of earmarks sought and approved. If that proves to be the case, states could find additional federal funding available for various state-federal programs in a fiscal environment where resources are limited.
The chart will be updated as these rules changes, which are likely to be followed by related statutory changes, advance through the legislative process in the nation’s capital. For additional information, please contact Hirsh Kravitz (202-624-8695, hirsh.kravitz@ncsl.org) or Michael Bird (202-624-8686, michael.bird@ncsl.org).
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In their continuing effort to target special interest lobbying, the Democrats and Republicans in the House and Senate have moved to enact bipartisan legislation codifying earmarks, campaign financing and lobbying reform laws in an effort to make due on their promise to increase transparency in government and decrease the influence many high-powered lobbyists. On January 18, 2007, the Senate passed The Legislative Transparency and Accountability Act (S.1) by a vote of 92-2. The House passed the Honest Leadership and Open Government Act (HR 2316) by a vote of 396-22 on May 24, 2007, paving the way for a conference committee to iron out the differences in the bills. However, a provision in the bill regarding earmark disclosure rules has caused a snag and temporarily derailed plans for the creation of the conference committee. The most critical of these issues for the States is that of earmark reform. While efforts to impose new rules to regulate lobbyists and campaign financing are important to the states because of the possible ethical issues they raise, the most important piece of the reform is that of earmarks. When earmarks are made in appropriations bills, an allocation to a specific project comes off the top of the funding. This money thereby reduces the amount left in the “pot” available for state and federal programs. The bipartisan effort to increase disclosure of earmarks would benefit the states as it would increase visibility of the process, therefore making it less likely that Members will slip in earmarks in appropriations bills. Another important area for the states is 527 reform. Currently, NCSL and state legislative candidates and committees that engage in purely state election activities are exempt from federal legislation addressing Section 527 organizations. However, there have been several attempts to compel Section 527 organizations to register as political action committees with expanded reporting requirements. However, the current legislation that has come out of both Houses has yet to change this status or the definition of lobbyist which maintains the current definition exempting state and local officials.
The link below is a chart, prepared by the Campaign Legal Center, comparing current law with S. 1, the Legislative Transparency and Accountability Act, and H.R. 2316, the Honest Government and Open Leadership Act. The chart covers provisions in the legislation relating to lobbying reform, travel and gifts rules, the revolving door, disclosure and earmarks.
http://www.campaignlegalcenter.org/attachments/1713.pdf
Last Updated July 11, 2007
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