Doggett Introduces Lobby Disclosure Bills

On March 13, Rep. Lloyd Doggett (D-TX) introduced two versions of his "Stealth Lobbyist Disclosure Act of 2005" (H.R. 1302), a proposed amendment of the Lobbying Disclosure Act of 1995 (LDA), and H.R. 1304, which modifies the Internal Revenue Code to treat lobbying coalitions as political organizations under Section 527 of the tax code and require more disclosure of their lobbying activities. H.R. 1302 provides that, in the case of a coalition or association that employs or retains other persons to conduct lobbying activities, each individual member of the coalition or association is the client for whom a registration must be filed. Current law only requires the coalition or association to register and file reports. The legislation creates a total exception for 501(c)(3) organizations. Other 501(c) organizations, such as social welfare organizations, unions and trade associations, are also exempt if they have "substantial exempt activities other than lobbying with respect to the specific issue for which it engaged the person filing the registration statement." The term "substantial" is not defined. This exemption creates a potential hazard for these 501(c) organizations if their focus is on a specific issue. Members of a coalition or association are also exempted if the amount they reasonably expect to contribute toward specific legislation-influencing activities of the coalition or association is less than $1,000 per any semiannual period. H.R. 1304 amends the tax code to treat any coalition or association that is identified as a client on any registration filed under the LDA as a political organization under Section 527 for purposes of disclosure, whether it is a political organization or not. The proposal would require any coalition or association to notify the Secretary of the Treasury of: (1) its existence within 72 hours after one of its lobbyists makes an initial legislative contact; and (2) any change in membership within 72 hours. It also requires the notice to include a general description of the business or activities of each member of the coalition or association and the amount reasonably expected to be contributed by each member toward coalition or association activities for influencing legislation. Additionally, a penalty tax for failure to give required notices would be imposed. H.R. 1304 has the same exemption for 501(c) groups as H.R. 1302, but exempts members of a coalition or association who contribute less than $2,000 per year for lobbying activities, rather than using the $1,000 per semiannual period standard. Doggett has introduced identical bills in the last two congresses. A member of the tax-writing Ways and Means Committee, Doggett became interested in the issue because of the number of groups he calls "stealth coalitions," which he has seen lobbying on provisions of tax law.
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