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Lobbying 101

From April 2006

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Bloodworth’s case is a classic example of how small-business people can get caught in a legislative web that could adversely affect their firms. Bills concerning issues such as taxation, workers’ compensation insurance, unfair competition and product bans are just a few that are regularly introduced.
     Should you consider hiring a lobbyist and/or joining a local advocacy group that follows and alerts you to business-related legislation?
     Lobbyist Rees, who has been in the advocacy business for 30 years, says one of the main roles of an advocate is to build and maintain relationships. “The legislators know us and trust that the information we bring to them is accurate, reliable and truthful,” Rees explains. 
     She added that there has been no change in the way lobbyists do business in Sacramento in light of the fraud and bribery scandal on Capitol Hill involving convicted Republican lobbyist Jack Abramoff, who will testify against some congressional members. “It’s had no effect whatsoever, because our rules are strict and stringent,” Rees says.
     Both Rees and lobbyist Jack Gualco, president of the Gualco Group, point to a wake-up call in the 1980s provided by a federal government sting operation. Known as Shrimpscam, because undercover FBI agents posed as businessmen representing the shrimp industry, the investigation included filming bribes being given to some California state and county lawmakers and staff. “Our culture has adapted, and people are playing by the rules consistently,” asserts Gualco, the recently elected vice president of the Sacramento-based Institute of Government Advocates, a professional association of state-registered lobbyists that adheres to a code of conduct. “We have tighter regulations than what goes on in Washington.”
     If you decide to consider hiring a lobbying firm, experts advise looking at its list of clients. To avoid a potential conflict of interest, see if the firm represents your competition or someone on the opposing side of an issue. Determine how much legislative experience the advocate has and schedule a meeting to “test” whether the lobbyist understands the type of issues your business faces. Inquire whether the lobbyist is a member of the Institute of Government Advocates.

Keep It Concise
There are some important do’s and don’ts to remember when you and your lobbyist meet with a legislator or staff member. On the “do” side, there’s advice from Dom DiMare, vice president of government relations for the California Chamber of Commerce: “Be succinct and concise. Don’t be disappointed if the legislators can’t meet with you. Staff is always a good alternative.”
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