Lobbyist A Expenditure Reporting Guide
Lobbyist A is required to report expenditures made for the benefit of specific legislative persons according to set thresholds. The report should detail spending on entertainment, meals, gifts, and more, ensuring transparency and compliance with regulations.
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Charles W. Harris, JD Executive Director & General Counsel Indiana Lobby Registration Commission
The activity report of each lobbyist shall include total expenditures on lobbying broken down to include at least the following: Entertainment, including meals. [Source is IC 2-7-3-3(a)(2)(D)] Gifts made to a legislative person. [Source is IC 2-7-3-3(a)(2)(E)]
More detailed reporting is required for gift & entertainment expenses that benefit a specific legislative person and that reach one of the following thresholds: 1) 1) $50 or more in one day. $50 or more in one day. 2) 2) More than $250 in a registration/reporting year. More than $250 in a registration/reporting year. [Source is IC 2-7-3-3 (a)(3)]
A lobbyist is required to have a separate entry for expenditures for entertainment (including meals and drink) or a gift, or both, that benefit a particular legislative person and that total $50 or more in one day.
Lobbyist A invites Representative Wonder Woman to tour Lobbyist A s employer s facilities in Utopia, Indiana on September 22, 2015. Lobbyist A spends $15.40 for her breakfast and $38.39 for her lunch. On October 15, 2015 Lobbyist A takes Senator Mighty Man to dinner in Indianapolis. Lobbyist A pays $63.75 for the Senator s dinner. How should Lobbyist A report these transactions?
Legislative Person Woman, Wonder Man, Mighty Legislative Person Description Description Amount $53.79 $63.75 Amount Meals 09/22/2015 Dinner 10/15/2015
Lobbyist A entertains Representative Flat Stanley in Utopia, Indiana on August 19, 2015. Lobbyist A pays the following amounts with respect to Representative Stanley: $150 for his green fees, $39.99 for a gift of a dozen golf balls, $35.75 for his lunch, and $85.40 for his dinner. How should Lobbyist A report these expenditures?
Legislative Person Stanley, Flat Legislative Person Description Description Amount $311.14 Amount Entertainment & Gift 08/19/2015
During the first reporting period that ended on April 30, 2015, Lobbyists A also had entertained Senator Mighty Man on five other occasions. The following is a list of those transactions: Description Description Amount Amount Lunch 01/14/2015 $25.60 Dinner 02/11/2015 $47.80 Dinner 03/17/2015 $39.45 Dinner 04/08/2015 $43.20 Lunch 04/15/2015 $36.90
From this information, we know that Lobbyist A spent $192.95 entertaining Senator Mighty Man during the first reporting period and that none of the five expenditures for that entertainment reached the daily reporting threshold. We also know that the $63.75 that Lobbyist A spent entertaining Senator Mighty Man during the second reporting period combined with the $192.95 from the first reporting period exceeds the annual threshold of $250.00 What does Lobbyist A need to do to comply with the Section E reporting requirements?
Since the $250 annual threshold has been exceeded, Lobbyist A will need to amend his 1stperiod report to include a Section E entry for the $192.95 that he spent entertaining Senator Mighty Man during that period. Lobbyist A also will need to amend Line 4 of Section C of his 1stperiod report to show an offsetting reduction of $192.95 since that amount will now be included in his Section E total and carried over to Line 7 of Section C.
Legislative Person Man, Mighty Legislative Person Description Description Amount $192.95 Amount Meals Annual Threshold Exceeded
For our next illustration, lets assume that that the date on which Lobbyist A paid $63.75 for Senator Mighty Man s dinner was April 25, 2015 instead of October 15, 2015. How should Lobbyist A report his entertainment expenditures that benefited Senator Mighty Man during the first reporting period?
Legislative Person Man, Mighty Man, Mighty Legislative Person Description Description Amount $63.75 $192.95 Amount Dinner 4/25/2015 Other Meals Annual Threshold Exceeded
IC 2 IC 2- -7 7- -3 3- -3.5 should report gift & entertainments expenses. Subsection (a) Requires specific tracking Subsection (b) Limits Subsection (c) Specifies aggregate reporting or activity. Subsection (d) Provides direction on how to report where 2 or more lobbyists split Subsection (e) Mandates a reduction in the amount to be reported where a legislative person contributes Subsection (f) Prohibits reporting if a legislative person pays amount ordinary course of business Subsection (g) Generally prohibits reporting expenditures or gifts made between relatives Subsection (h) Prohibits reporting of gift or entertainment expenses related to a legislative person s performance of official duties 3.5 contains a number of special rules that impact how a lobbyist specific tracking of expenses. Limits the allocation aggregate reporting for an all members allocation of expenses. all members function 2 or more lobbyists split an expenditure. legislative person contributes toward the expenditure. legislative person pays the same any purchaser would pay in the same amount for goods or services that any purchaser would pay in the ordinary course of business. relatives. official duties.
Expenditures that can clearly & reasonably be attributed to a particular legislative person must be reported with respect to that legislative person. [Source is IC 2-7-3-3.5 (a)] A report of an expenditure with respect to a particular legislative person: 1) Must report actual amounts; 2) May not allocate to the legislative person a prorated amount derived from an expense made with respect to several legislative persons; to the extent practical to the extent practical. [Source is IC 2-7-3-3.5 (b)]
Expenses for such a function or activity are to be reported. (Line 6 of Section C) The expenditures for such a function or activity may not be allocated and reported with respect to a particular legislative person. (No Entry in Section E) [Source is IC 2-7-3-3.5 (c)]
The total amount of the expenditure determines whether the expenditure is to be reported in Section E. Each lobbyist shall report the actual amount the lobbyist contributed to the expenditure. [Source is IC 2-7-3-3.5 (d)]
Hypothetical Facts. and B take Representative Mighty Man to dinner. They shared equally in the cost of his $70.00 dinner, with each paying $35.00 by separate charges to their personal credit cards. Hypothetical Facts. Compensated Lobbyists A How to Report. report in Section E an expenditure of $35.00 for entertainment of Mighty Man on the applicable date and note that the amount reported is the lobbyist s share of a total expenditure of $70.00 How to Report. Lobbyists A and B should each
Legislative Person Man, Mighty Legislative Person Description Share of $70.00 dinner 01/25/2015 Description Amount Amount $35.00
The report of an expenditure with respect to a particular legislative person may not include any amount that the legislative person contributed to the expenditure. [Source is IC 2-7-3-3.5 (e)] An activity report may not include an expenditure or gift related to property or services received by a legislative person if he or she paid the same amount for the property or services that any purchaser would be charged in the ordinary course of business. [Source is IC 2-7-3-3.5 (f)]
The definition of relative parent, child, sibling, aunt or uncle, niece or nephew, grandparent, grandchild, great- grandparent, or great-grandchild of either the individual or the individual s spouse. A relative by adoption, half-blood, marriage, or remarriage is considered as a relative of whole kinship. [Source is IC 2-7-1-16.5 and IC 2-2.2-1-17] relative includes a spouse and a An activity report may not include an expenditure or gift made between relatives unless the expenditure or gift is made in connection with legislative action. [Source is IC 2-7-3-3.5 (g)]
An activity report may not include expenditures or gifts related to the performance of a legislative person s official duties, including the legislative person s service as a member of any of the following: 1) 2) 3) by the rules of the House or Senate. 4) Legislative Council. 5) [Source IC 2-7-3-3.5 (h)] Legislative Council. Budget Committee. A standing committee or other committee established A study committee established by statute or the A statutory board or commission.
If a lobbyist makes a gift or gifts to a legislative person the value of which reaches either of the Section E reporting thresholds, the lobbyist must file a separate gift report with the Commission & provided a copy of the report to the legislative person. The separate gift report is due not later than 15 business days after the gift that triggers the reporting requirement is made. [Source is IC 2-7-3-3.3]
In addition to a late registration statement or activity report, the statutory late fee of up to $100 per day with a maximum of $4,500 now applies to late gift reports and late purchase reports. [Source IC 2-7-2-2, IC 2-7-3-2, IC 2-7- 3-3.3, and IC 2-7-3-7] The criminal provision for failure to file a timely statement or report only applies if a lobbyist does not correct the situation within 10 business days after the Commission notifies the lobbyist by certified mail. [Source IC 2-7-6-2]
