New lobbying legislation could have serious implications for businesses

The Massachusetts legislature has passed a new lobbying law, “An Act to Improve the Laws Relating to Campaign Finance, Ethics and Lobbying,” which takes effect on January 1, 2010. Among other things, the Act defines “lobbying” as “any act to promote, oppose, influence or attempt to influence legislation,” including “strategizing, planning and research if performed in connection with or for use in an actual communication with a government employee,” and generally requires individuals who engage in more than 25 hours of lobbying activity in a six-month period or who receive more than $2,500 for lobbying activities in a six-month period to register with the state’s Lobbyist Section.

This means that if a business executive communicates with members of the state legislature in order to persuade their vote on certain legislation, meets with lobbyists to discuss strategy concerning pending legislation, or even communicates with city or town officials in an attempt to influence state-level legislation, that executive will have to register as a lobbyist if he or she meets the 25-hour or $2,500 criteria. Registered lobbyists are required to fulfill certain obligations, including attending an educational seminar offered by the Secretary of the Commonwealth in each year that they register; paying annual registration fees; and filing detailed semi-annual disclosure reports regarding their lobbying activities and any campaign contributions they make. Individuals who violate the new law face potential fines of up to $10,000 and imprisonment for up to five years.

Businesses in certain industries, such as nonprofit organizations, should pay close attention to the changes in Massachusetts’ lobbying laws given the level of communication such businesses tend to have with state officials regarding legislative activity. If you would like further information on this law or how it may affect your business, please do not hesitate to contact us.

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