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By: Allan J. Hayes
Most businesses are subject to federal, state and local laws and regulations. The business value at stake from legislative and government regulatory intervention is huge: about 30 percent of earnings for companies in most industries, according to a 2010 study by McKinsey & Company, and higher still in the banking sector, where the figure tops 50 percent. Participation in the political and public policy processes is vital to most businesses. This participation is generally referred to as lobbying.
Can anyone lobby? Well, yes. The Encyclopedia Britannica defines lobbying as “any attempt by individuals or private interest groups to influence the decisions of government.” The United States Constitution provides for lobbying in the First Amendment by protecting the right of individuals “to petition the government for the redress of grievances.”
If anyone can do it, why does FMG have professional registered lobbyists? Lobbying involves more than persuading legislators. Professional lobbyists research and analyze legislation or regulatory proposals, attend legislative hearings, and educate government officials and corporate officers on important issues. It is a full-time job that requires a specialist to properly execute. Our experienced professionals represent our client’s interests before government so our clients can concentrate on effectively running their business.
Also, the federal government and most states regulate lobbying. Lobbyists working to influence the federal government are regulated by the Lobbying Disclosure Act of 1995, as amended. According to the National Conference of State Legislatures, there are more than 50 versions of lobbying laws in states and territories. In Georgia for instance, Georgia Code §21-5-70 and §21-5-71 defines a lobbyist as one who receives more than $250.00 per year to “promote or oppose the passage of any legislation by the General Assembly, or any committee of either chamber or a joint committee thereof, or the approval or veto of legislation by the Governor.” The statutes further regulate expenditures by lobbyists for entertainment, meals and gifts as well as disclosure of and the amounts spent on such activities. These regulatory burdens can be significant for the part-time or occasional lobbyist.
When I did research on lobbying in Georgia in the early 1990s for the book Politics in Georgia by Dr. Arnold Fleischman and Dr. Carol Pierannunzi, of UGA and KSU respectively, there were 1059 lobbyists registered. In 2016 there were 1085 registered lobbyists, even though the ethics laws had been strengthened three times, the number has not fluctuated much in 25 years. For good reason, businesses and associations have continued to trust professional lobbyists to represent their interests at the Capitol.
For more information, please contact Allan Hayes at firstname.lastname@example.org.