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Indiana Lobby Registration Commission

ILRC > Advisory Opinions > Final Advisory Opinions > FINAL ADVISORY OPINION 99-02 Advisory Opinions

FINAL ADVISORY OPINION 99-02:
Report Compensation Paid to Partners Who Lobby

Indiana Lobby Registration Commission

(Ratification vote taken at public meeting of June 15, 1999)


RATIFICATION VOTE:

Chairman Bepko - yes
Vice-Chairman Krahulik - yes
Commissioner Abbs - yes
Commissioner Hicks - yes (in absentia)

Questions and written comments may be directed to Indiana Lobby Registration Commission, 115 W. Washington, Suite 1375, Indianapolis, IN 46204
(317) 232-9860





Facts:

Partnership "A" is a registered lobbyist. A employs two associate attorneys who lobby on behalf of A's clients. A employs one individual who is not an attorney, but who lobbies on behalf of the clients of A. A is a partnership, and three of the partners spend some time lobbying on behalf of the clients of A. Pursuant to FAO 98-02, A reports the value of compensation paid to the two associate attorneys and to the individual who is not an attorney, but who lobbies on behalf of A's clients. In arriving at an aggregate reportable figure for those employees, A should follow the guidance of FAO 98-02.

A must also report the value of compensation paid to the partners who lobby, pursuant to the guidance of this opinion.

Because A files activity reports only in its capacity as a compensated lobbyist, A must determine how much compensation paid to its employees and associates is attributable to its various clients. If necessary, A may pro-rate the aggregate figure of compensation it pays between all of A's clients. A may not pro-rate that figure (or any other reportable expenditure) between its clients if the expenditure can be directly related to any given client. Thus, if a partner spends considerable time lobbying for one of A's clients, but not for the others, then A must attribute the compensation it pays to that partner to the client(s) for whom the partner or employee lobbied.

Discussion:

As per the written recommendation of the Governmental Affairs Society of Indiana Lobby Registration and Campaign Finance Committee, the ILRC adopts the following methodology for reporting compensation paid to partners who lobby:

  1. Determine the total number of billable and non-billable hours worked during the reporting period; determine the number of hours recorded for lobbying, and then determine the total time that the time spent lobbying represents;

  2. Determine the amount of compensation allocated to the partner during the reporting period, including the value of benefits other than overhead ascribable to the partner; and

  3. Determine the pro-rata amount of partner compensation reportable by the firm as an employer lobbyist based upon the percentage of partner time spent on lobbying during the reporting period.

GASI provided the ILRC with a written conclusion to the above recommendation, which states: "Although the committee recognizes that there may be certain nuances to partner compensation which vary from firm to firm, it believes that the recommendation calculation described above will generally result in meaningful and consistent comparison among reporting firms."