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F I S C A L I M P A C T R E P O R T

SPONSOR Grubesec

ORIGINAL DATE

LAST UPDATED

2/22/07

HB

SHORT TITLE Reporting of Lobbyist Compensation

SB 1137

ANALYST Wilson

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

Senate Bill 1137 amends the Lobbyist Regulation Act to require lobbyist compensation to be

reported.

SIGNIFICANT ISSUES

Lobbying is frequently performed on behalf of organizations which also make campaign

contributions. This has led to allegations of corruption by opponents of some lobbying

organizations.

Some politicians have been known to make bad decisions and some have been found in

apparently compromising positions because of their need to solicit financial contributions for

their campaigns. Critics complain that they then appear to be acting in the interests of those who

fund them, giving rise to the public perception of political corruption.

Supporters of the system respond that many politicians act in the interests of those who fund

them due to common ideologies or shared local interests, and that lobbyists merely support those

who agree with their positions.

Several states and cities in the United States have passed Clean Elections laws to be sure that

lobbyists gain influence by the persuasiveness of their arguments rather than the size of their

campaign contributions.

Senate Bill 1137 – Page

2

The public clearly has the right to know how its money is spent-- especially when a person or a

firm is hired by a public body to influence another branch of government. This should include

non governmental entities who receive public monies as grants or contracts.

On the other hand, opponents of this bill will argue that a private group has the right to contract

with whomever they choose at what ever price without having to reveal it to the public.

POSSIBLE QUESTIONS

The current law requires lobbyists to report their spending on elected or appointed officials as

well as their employees, but should lobbyists have to report what they are receiving.

DW/nt