Tennessee lobbyists lobbying against strict regulation

As a special legislative committee met earlier this month to discuss tougher ethics laws, a substantial portion of the audience wore the plastic ID badges of a registered lobbyist.

But the president of the state lobbyist association knows that changes are coming.

“People don’t like lobbyists generally, and we understand that,” said Mark Greene, president of the Tennessee Lobbyists Association. “We could go out and hire every PR agency in the state and spend a million dollars, and people would still see lobbyists as the fat guy with a bag full of money. “

The joint House-Senate committee, along with a citizen’s advisory committee appointed by Gov. Phil Bredesen, are studying ways to strengthen the state’s ethics laws in the wake of a series of scandals.

Bredesen is considering calling a special session of the Legislature to consider new ethics laws, and the panels are expected to be key in developing bills that would be considered.

The two ethics committees were formed following the May 26 arrests of five current or former lawmakers and two lobbyists in a federal bribery sting code-named Tennessee Waltz.

The seven were charged with accepting bribes from undercover agents posing as representatives of a fake company called E-Cycle Management that offered money to lawmakers for their help in passing legislation favorable to the company.

During legislative sessions, lobbyists and lawmakers mix in the halls of Legislative Plaza between committee meetings, much like students between classes. They also mingle at after-hours dinners and receptions paid for by the lobbyists, a practice that critics say gives them excessive influence with lawmakers.

Members of the joint committee heard a report from national expert Peggy Kerns of the National Conference of State Legislatures about how other states regulate lobbyists and their activities.

Kerns said 24 states require disclosure of lobbyists’ income and spending. Many states also require lawmakers to report money spent on them by lobbyists, something Tennessee does not do, she said.

Tennessee laws require lobbyists to report contributions to legislative candidates, and those donations totaled $245,180 last year.

The list of organizations registered to lobby in Tennessee is nearly 60 pages long this year. There are about 500 registered lobbyists, and many represent more than one client.

Joint ethics committee co-chairman, Sen. Micheal Williams, R-Maynardville said he expects lawmakers will look at what’s working best in other states in shaping lobbyist regulations for Tennessee.

Williams said it would be wrong for lawmakers not to listen to lobbyists, but he supports closer scrutiny of their activities.

“If they are going to be part of the part of the legislative process, it’s only fair,” he said.

Williams said he will file an overall ethics bill next week that would create tighter regulations for both lawmakers and lobbyists.

His bill would require organizations that employ lobbyists to file itemized reports listing lobbyist pay and all spending “meant to influence public policy.” It would also ban lobbyists’ contingency fees — the money paid if a client wins a favorable outcome. The bill would add criminal penalties for violation of ethics laws.

Greene said lobbyists oppose having to disclose their incomes and any prohibition on working for contingency fees.

Contingency fees let smaller organizations hire skilled lobbyists because they only have to give the lobbyists full pay if they are successful, Greene said.

“Third, we want to make sure whatever is passed is clear and understandable,” Greene said.

Williams said he agrees with that sentiment.

“We want to eliminate any gray areas,” he said.

One step lobbyists may take themselves is to require ethics training for everyone who registers as a lobbyist in Tennessee, Greene said.

Chattanooga lobbyist Paul Starnes looks at the issue of regulating lobbyists from the perspective of having served in the state House for 18 years. No matter how lobbyists are regulated following the Tennessee Waltz arrests, the relationships between lawmakers and lobbyists will change, he said.

“What will happen is that both sides will be very cautious about what they do and how they do it,” Starnes said.

Familiarity between lobbyists and lawmakers can make both too casual in their interactions, he said.

“It is helpful for people to be more straightforward,” Starnes said. “This is a good lesson learned.”