Michigan high school students must earn at least one
half-credit in civics education as a requirement for graduation,
ensuring all those earning diplomas in the state are able to name the
three branches of government or describe how a bill becomes a law. While
our secondary schools provide a basic understanding of the legislative
process, in theory, the majority of our electorate is often clueless to
the realities of the political process.
The reality is there are more than three branches of government. Beyond the governor (or president), Senate and House of Representatives, there are the influencers, the people behind the legislators, who provide awareness, information, direction, and at times, pressure. They're called lobbyists.
Case in point: For more than 40 years, a growing number of motorcycle riders in Michigan had complained about the state's motorcycle helmet laws, which had required all bikers and passengers to wear a helmet when riding. The state law had once been tied to a 1967 federal requirement that attached some transportation funding to state helmet laws. For years, motorcyclists who wanted to change the law protested at the state Capitol in Lansing, with little to no results.
The reality is there are more than three branches of government. Beyond the governor (or president), Senate and House of Representatives, there are the influencers, the people behind the legislators, who provide awareness, information, direction, and at times, pressure. They're called lobbyists.
Case in point: For more than 40 years, a growing number of motorcycle riders in Michigan had complained about the state's motorcycle helmet laws, which had required all bikers and passengers to wear a helmet when riding. The state law had once been tied to a 1967 federal requirement that attached some transportation funding to state helmet laws. For years, motorcyclists who wanted to change the law protested at the state Capitol in Lansing, with little to no results.
Advice came from Lansing lobbyist and fellow biker
Noel LaPorte with Capitol Advocacy Services Group, who Rhoades said
volunteered to help the group participate in the political process in a
more meaningful way.
"We hired a lobbyist who happened to be a motorcycle
rider, which was to our advantage," Rhoades said. "We hired him more as
an advisor because he told us what we should be doing. In that regard,
it was great advice."
The group was able to rally members to volunteer as precinct delegates at more than 150 polling stations around the state. The group also started working with key legislators, attending and testifying in committee hearings and providing meaningful information lawmakers and their staff.
Two different bills to change the helmet law were passed by the state legislature, but vetoed by former Governor Jennifer Granholm. A third bill was eventually passed by Governor Rick Snyder and went into effect in 2012. Today, motorcyclists who have had a motorcycle endorsement for at least two years and are over 21 may decide for themselves if they wear a helmet when riding.
"I've testified at probably 100 public hearings," Rhoades said. "We have been extremely active. When we first started out, we said, 'what the hell, we'll go to Lansing and burn a couple of helmets.' We had to find out how to participate. That's one of the things that our lobbyist has done to help us in that regard. That's been a real good experience. Now I'm on a first name basis with probably 80 percent of the legislature."
The group was able to rally members to volunteer as precinct delegates at more than 150 polling stations around the state. The group also started working with key legislators, attending and testifying in committee hearings and providing meaningful information lawmakers and their staff.
Two different bills to change the helmet law were passed by the state legislature, but vetoed by former Governor Jennifer Granholm. A third bill was eventually passed by Governor Rick Snyder and went into effect in 2012. Today, motorcyclists who have had a motorcycle endorsement for at least two years and are over 21 may decide for themselves if they wear a helmet when riding.
"I've testified at probably 100 public hearings," Rhoades said. "We have been extremely active. When we first started out, we said, 'what the hell, we'll go to Lansing and burn a couple of helmets.' We had to find out how to participate. That's one of the things that our lobbyist has done to help us in that regard. That's been a real good experience. Now I'm on a first name basis with probably 80 percent of the legislature."
While the lobbying of politicians is typically done
through registered lobbyist agents that have to report how they
influence the state's key lawmakers, the story behind the state's helmet
law is just one example of the inter-workings of the legislative
process that isn't taught in traditional textbooks.
"The ABATE group, they don't have a lot of lobbyists. What they have is 10,000 guys on motorcycles," said state Sen. Mike Kowall (R-White Lake). "That shows you that an interest group on their own can get a hell of a lot done if they do it in an organized fashion, without spending millions."
At the basic level, lobbying means spending money in an attempt to influence the legislative or administrative actions of public officials. Influence may mean promoting, supporting, modifying, opposing or delaying by any means, including providing or using information, statistics, studies or analysis. It may also include discussions over high-end meals and/or drinks; travel expenses; or loans to a public official and their family.
Under state law, lobbying is defined as any direct communication with a state level public official to influence the official's legislative or administrative action. That communication may be face-to-face, by telephone, letter, electronic media or other means. And, while any person may communicate directly with a public official at any time, a person must register as a lobbyist or a lobbyist agent once specific monetary thresholds are met.
"Influencing means promoting, supporting, modifying, opposing, delaying by any means, including the providing or use of information, statistics, studies or analysis," under state law.
"The ABATE group, they don't have a lot of lobbyists. What they have is 10,000 guys on motorcycles," said state Sen. Mike Kowall (R-White Lake). "That shows you that an interest group on their own can get a hell of a lot done if they do it in an organized fashion, without spending millions."
At the basic level, lobbying means spending money in an attempt to influence the legislative or administrative actions of public officials. Influence may mean promoting, supporting, modifying, opposing or delaying by any means, including providing or using information, statistics, studies or analysis. It may also include discussions over high-end meals and/or drinks; travel expenses; or loans to a public official and their family.
Under state law, lobbying is defined as any direct communication with a state level public official to influence the official's legislative or administrative action. That communication may be face-to-face, by telephone, letter, electronic media or other means. And, while any person may communicate directly with a public official at any time, a person must register as a lobbyist or a lobbyist agent once specific monetary thresholds are met.
"Influencing means promoting, supporting, modifying, opposing, delaying by any means, including the providing or use of information, statistics, studies or analysis," under state law.
Exclusions from the
definition of lobbying under state law include: communications between
employees and public officials for whom they work; ministerial actions,
or those actions that are taken by a public official in obedience to law
without their personal discretion as to whether or not to take action;
and taking an editorial stance in a newspaper or similar publication
intended for general circulation. Communication with a county, township,
city or village level officials isn't governed by state law, nor is
communication with federal level officials.
Additionally, grass roots lobbying, such as contacting members of an organization or the general public and urging them to contact a public official on their own time and at their own expense, isn't considered lobbying.
Lobbyable public officials are essentially those that may use personal discretion in deciding whether or not to take legislative or administrative action. State law specifically states the positions of lobbyable public officials under the executive and legislative branches of government, as well as public officials at each of the state's public universities.
Additionally, grass roots lobbying, such as contacting members of an organization or the general public and urging them to contact a public official on their own time and at their own expense, isn't considered lobbying.
Lobbyable public officials are essentially those that may use personal discretion in deciding whether or not to take legislative or administrative action. State law specifically states the positions of lobbyable public officials under the executive and legislative branches of government, as well as public officials at each of the state's public universities.
Under the Michigan Lobby Registration Act, a
"lobbyist agent" is the individual, firm or organization that is paid to
lobby public officials on behalf of an employer or client. A
"lobbyist," under the act, is the corporation, association or other type
of organization that pays the lobbyist agent to conduct lobbying
activities. Under the law, lobbyist agents who are paid more than $600
during any 12-month period for lobbying must register with the Michigan
Secretary of State; a person who spends more than $600 during a 12-month
period must register as a lobbyist.
While the definition of a lobbyist may include a wide variety of people and activities, state law provides several exceptions to those who must register as a lobbyist. Those exceptions include: any lobbyable state-level public official who is acting in the scope of the office for no compensation; elected or appointed public officials acting in the scope of the office for no compensation who serve in an autonomous policy making capacity; a publisher, owner or working member of the press, radio or television while disseminating news or editorial comment to the general public in the ordinary course of business; a member of a group if the group is a lobbyist organization; churches and religious institutions; vendors communicating with a public official concerning the purchase of goods and services isn't considered lobbying if no policy decision is required on the part of the public official; nor is a person considered a lobbyist who voluntarily appears before a legislative committee at the committee's request.
Spending reported to the Michigan Secretary of State by lobbyists and lobbyists agents for the first seven months of 2014 totaled over $20.5 million, according to the Michigan Campaign Finance Network, which compiled hundreds of thousands of the reports. That amount is up by 2.5 percent compared to the same period in 2013.
Rich Robinson, executive director of the non-profit, non-partisan network, said state level spending by lobbyists continues to increase while the economy recovers.
While the definition of a lobbyist may include a wide variety of people and activities, state law provides several exceptions to those who must register as a lobbyist. Those exceptions include: any lobbyable state-level public official who is acting in the scope of the office for no compensation; elected or appointed public officials acting in the scope of the office for no compensation who serve in an autonomous policy making capacity; a publisher, owner or working member of the press, radio or television while disseminating news or editorial comment to the general public in the ordinary course of business; a member of a group if the group is a lobbyist organization; churches and religious institutions; vendors communicating with a public official concerning the purchase of goods and services isn't considered lobbying if no policy decision is required on the part of the public official; nor is a person considered a lobbyist who voluntarily appears before a legislative committee at the committee's request.
Spending reported to the Michigan Secretary of State by lobbyists and lobbyists agents for the first seven months of 2014 totaled over $20.5 million, according to the Michigan Campaign Finance Network, which compiled hundreds of thousands of the reports. That amount is up by 2.5 percent compared to the same period in 2013.
Rich Robinson, executive director of the non-profit, non-partisan network, said state level spending by lobbyists continues to increase while the economy recovers.
"It dipped during the recession, as did campaign
finance spending, but we seem to be out of that now. I suspect that
until there is some serious economic disruption, it will continue to
increase," Robinson said. "It seems that I read there has been some
leveling off of lobbying spending in (Washington) D.C., but there you
are talking about an industry that spends about $300 million a month."
Of the nearly 1,500 registered lobbyist agents in the state, the most influential, in terms of money spent, tend to be large, multi-client firms.
Such firms often employ more than a handful lobbyist agents with varying backgrounds in governmental work, politics and law. Such multi-client firms are also able to influence both Republican and Democratic lawmakers by utilizing employees from both sides of the aisle.
"Two that I think are most highly regarded, and usually win awards, are Nell Kuhnmuench and Steve Young," Kowall said. "Both of them, I've known for years."
Both Kuhnmuench and Young are directors for Governmental Consultant Services, a multi-client lobbying firm that is consistently listed as one of the most influential lobbyists in the state. Kuhnmuench served for eight years as chief of staff to two different Democratic speakers of the Michigan House of Representatives. Young worked for seven years as a tax lobbyist for the Michigan Chamber of Commerce and was an administrative assistant to a former Republican state senator.
The firm has worked with clients such as AT&T, Michigan International Speedway, the Detroit Medical Center, city of Grand Rapids, the Michigan Beer and Wine Wholesalers Association, and many others. The firm was founded in 1983 by former Democratic Speaker of the House Bobby Crim and former Republican Senate Majority Speaker Robert VanderLaan.
Of the nearly 1,500 registered lobbyist agents in the state, the most influential, in terms of money spent, tend to be large, multi-client firms.
Such firms often employ more than a handful lobbyist agents with varying backgrounds in governmental work, politics and law. Such multi-client firms are also able to influence both Republican and Democratic lawmakers by utilizing employees from both sides of the aisle.
"Two that I think are most highly regarded, and usually win awards, are Nell Kuhnmuench and Steve Young," Kowall said. "Both of them, I've known for years."
Both Kuhnmuench and Young are directors for Governmental Consultant Services, a multi-client lobbying firm that is consistently listed as one of the most influential lobbyists in the state. Kuhnmuench served for eight years as chief of staff to two different Democratic speakers of the Michigan House of Representatives. Young worked for seven years as a tax lobbyist for the Michigan Chamber of Commerce and was an administrative assistant to a former Republican state senator.
The firm has worked with clients such as AT&T, Michigan International Speedway, the Detroit Medical Center, city of Grand Rapids, the Michigan Beer and Wine Wholesalers Association, and many others. The firm was founded in 1983 by former Democratic Speaker of the House Bobby Crim and former Republican Senate Majority Speaker Robert VanderLaan.
"Nell leans a little to the Democratic side, and Steve to the Republican side, but that doesn't mean anything to anyone, they are both quality people," Kowall said.
State Rep. Klint Kesto (R-Commerce Township) said lobbyists play a vital role in the political process by representing specific clients or causes, with lobbyists working on both sides of nearly every issue.
"People always think lobbyists are representing big business, but that is further away from the truth because they represent both sides," Kesto said, indicating that both liberal and conservative
groups, as well as all those in between, have
lobbyists working for them to influence lawmakers. "They are also giving
you information to allow legislators to make an informed decision. At a
minimum, you're getting a document." Kesto said the most influential
lobbyists seem to work with larger, multi-client firms.
"They have more of an influence only because they have more clients, so they are always able to advocate for more issues, so they get more face time," he said. "They are all really good people. I don't know what their perception is like in Washington, but here you have people that are just doing their job."
Kesto said there are some fair lobbyists, such as Scott Breslin with Public Affairs Associates, which are able to "give both sides of the picture." While he has only been in Lansing for about two years, Kesto said the perception that special interests dominate the political process isn't accurate.
"Almost every issue has interests on both sides," he said. "The public's perception, and one that I had when I started, was that special interests are coming in and controlling this thing."
State Rep. Mike McCready (R-Birmingham, Bloomfield Township, Bloomfield Hills) said while he has only been in the legislature for two years, the most influential lobbyists tend to be large firms. As far as individual influence, he said those with experience and a solid understanding of the issues tend to sway more minds.
"You can kind of tell who the predominant lobbyists are, but they don't really reveal their true size or volume. They usually keep that close to the vest," McCready said. "Of course, the large multi-client firms are influential. Then you have companies that employ their own lobbyists, like AT&T and a handful of others." McCready said lobbyists are particularly influential with politicians who are seeking fundraising for re-election campaigns, an area where lobbyists may be particularly influential.
"My financial support comes from constituents in my district," McCready said. "I'm fortunate to come from a wealthy district, but many don't, and those lobbyists can raise a lot of money."
The number of lobbyists and lobbyist agents registered in Michigan has continued to grow since 1998. While the number of lobbyists and agents fluctuate on any given day due to new registrations or terminations, the total number of lobbyists and lobbyist agents registered with the state in 2013 was 2,923. That number is up from 2,202 in 1998, and second highest to only 2012, when 2,959 were registered.
Of the some 1,500 lobbyist agents registered in the state, the most influential, in terms of money spent, are multi-client firms such as Governmental Consultant Services, which topped the list. According to the Michigan Campaign Finance Network, the 20 most influential lobbyists in the state and the amount they spent in the first seven months of 2014 are:
McCready said lobbyists are particularly influential with politicians who are seeking fundraising for re-election campaigns, an area where lobbyists may be particularly influential.
"My financial support comes from constituents in my district," McCready said. "I'm fortunate to come from a wealthy district, but many don't, and those lobbyists can raise a lot of money."
The number of lobbyists and lobbyist agents registered in Michigan has continued to grow since 1998. While the number of lobbyists and agents fluctuate on any given day due to new registrations or terminations, the total number of lobbyists and lobbyist agents registered with the state in 2013 was 2,923. That number is up from 2,202 in 1998, and second highest to only 2012, when 2,959 were registered.
Of the some 1,500 lobbyist agents registered in the state, the most influential, in terms of money spent, are multi-client firms such as Governmental Consultant Services, which topped the list. According to the Michigan Campaign Finance Network, the 20 most influential
• Governmental Consultant Services, $1,003,005;
• Kelly Cawthorne, $771,238;
• James H. Karoub Associates, $570,208;
• RWC Advocacy, $371,735;
• Michigan Health and Hospital Association, $327,244;
• Public Affair Associates, $285,460;
• Muchmore Harrington Smalley and Associates, $253,323;
• Midwest Strategy Group of Michigan, $246,435;
• Michigan Education Association, $217,165;
• Michigan Credit Union League, $212,570;
• National Federation of Independent Business, $202,800;
• Kheder Davis and Associates, $200,689;
• Michigan Legislative Consultants, $199,327;
• Dodak Johnson and Associates, $192,606;
• Blue Cross and Blue Shield, $185,930;
• Capitol Affairs Inc., $178,941;
• Scofes and Associates Consulting, $176,194;
• DTE Energy Company, $158,201;
• Kandler Reed Khoury and Muchmore, $153,663;
• Acuitas, $151,650.
• Kelly Cawthorne, $771,238;
• James H. Karoub Associates, $570,208;
• RWC Advocacy, $371,735;
• Michigan Health and Hospital Association, $327,244;
• Public Affair Associates, $285,460;
• Muchmore Harrington Smalley and Associates, $253,323;
• Midwest Strategy Group of Michigan, $246,435;
• Michigan Education Association, $217,165;
• Michigan Credit Union League, $212,570;
• National Federation of Independent Business, $202,800;
• Kheder Davis and Associates, $200,689;
• Michigan Legislative Consultants, $199,327;
• Dodak Johnson and Associates, $192,606;
• Blue Cross and Blue Shield, $185,930;
• Capitol Affairs Inc., $178,941;
• Scofes and Associates Consulting, $176,194;
• DTE Energy Company, $158,201;
• Kandler Reed Khoury and Muchmore, $153,663;
• Acuitas, $151,650.
The majority of the money spent by lobbyists,
Robinson said, is to pay for the expense of lobbying personnel, and the
expenses of the lobbyists themselves. For instance, while more than $20
million was spent by lobbyists in the first seven months of 2014, about
$52,000 was spent on food and beverages to individuals, or Supplemental
Nutrition Assistance for Politicians (SNAP), which includes alcoholic
beverages. Nearly $85,000 was spent by lobbyists to groups during the
same time period.
The top individual recipients of SNAP benefits and the amount they received in food and beverages were: Sen. Randy Richardville, $3,586; Rep. Aric Nesbitt, $2,334; Rep. Scott Dianda, $2,007; Rep. Frank Foster, $1,992; Rep. Harold Haugh, $1,696; Sen. Arlan Meekhof, $1,696; Sen. Tory Rocca, $1,632; Rep. Klint Kesto, $1,423; Rep. Rebekah Warren, $1,408; and Rep. Gail Haines, $1,213.
"I've dealt with them a lot because I've been in some very, very controversial committees over the years," Kowall said. "The good guys will come in and say, 'I'm working for company X', and they are looking to get legislation or a grant or something, and 'here is the upside.' Then they will say, 'now let me tell you the downside, and what the detractors will say.' They will want to know what you think and where you are after you read over the materials.
"The good ones don't twist arms, and don't offer the sun, the moon and the stars," Kowall continued. "Then there are the other guys that come in and allude to all kinds of things they are going to do for you. After a while, you can tell who those people are. I've never had anyone try to bribe me or offer me cash because that's illegal and you can't do that. I have had people in the past who have alluded to that, and you just stop them and let them know they are treading on very thin ice. On the other hand, when I wasn't in the legislature, I did some consulting work,, and I have had legislators ask me flat out, 'what's in it for me?' I think that used to be the rule of the day."
The top individual recipients of SNAP benefits and the amount they received in food and beverages were: Sen. Randy Richardville, $3,586; Rep. Aric Nesbitt, $2,334; Rep. Scott Dianda, $2,007; Rep. Frank Foster, $1,992; Rep. Harold Haugh, $1,696; Sen. Arlan Meekhof, $1,696; Sen. Tory Rocca, $1,632; Rep. Klint Kesto, $1,423; Rep. Rebekah Warren, $1,408; and Rep. Gail Haines, $1,213.
"I've dealt with them a lot because I've been in some very, very controversial committees over the years," Kowall said. "The good guys will come in and say, 'I'm working for company X', and they are looking to get legislation or a grant or something, and 'here is the upside.' Then they will say, 'now let me tell you the downside, and what the detractors will say.' They will want to know what you think and where you are after you read over the materials.
"The good ones don't twist arms, and don't offer the sun, the moon and the stars," Kowall continued. "Then there are the other guys that come in and allude to all kinds of things they are going to do for you. After a while, you can tell who those people are. I've never had anyone try to bribe me or offer me cash because that's illegal and you can't do that. I have had people in the past who have alluded to that, and you just stop them and let them know they are treading on very thin ice. On the other hand, when I wasn't in the legislature, I did some consulting work,, and I have had legislators ask me flat out, 'what's in it for me?' I think that used to be the rule of the day."
Michigan Campaign Finance Network's Robinson said the
function of lobbyists in the political process is extremely important
because it is the main way that interest groups make their wants and
needs known to lawmakers and those in the executive branch. Still, he
said, despite Michigan's financial reporting requirements, there are
areas where disclosure of lobbying spending can be improved.
"There are certainly shortcomings in lobbying disclosure. First, there are thresholds beneath which activity doesn't need to be reported," he said. "If an individual lobbyist spends less than $58 (on food and beverages) a month on a lobbyable public official, that doesn't have to be reported. You can accumulate until you reach $350 in a calendar year. More serious than that is travel accommodations under $750, and financial transactions that don't have to be reported."
Financial transactions of $1,175 or more between a registered lobbyist or a lobbyist agent and a public official, a member of the public official's immediate family or a business with which the individual is associate must be reported. Travel and lodging paid for or reimbursed to a public official in connection with public business in excess of $775 must be reported. Food and beverage expenses for public officials in excess of $58 in any month, or $350 for the year must be reported to the state Bureau of Elections. Gifts, such as a payment, advance, or anything of value which exceeds $58 during any one-month period are prohibited from being given to public officials from lobbyists or lobbyist officials.
"So, if a lobbyist makes a loan to a public official's wife or son (for less than $1,175), and never asks for it to be repaid, that would never have to be reported," Robinson said.
Financial report summaries must be filed twice each year by all lobbyist and lobbyist agents, even if they haven't had any activities or expenditures to disclose for the reporting period. Reporting periods run from Jan. 1 to July 31, and from Aug. 1 to Dec. 31 each year. However, Robinson said timing of the information is lacking because the filing deadline for the reports are Aug. 31 and Jan. 31, which means most recent information isn't available to the public until after the primary and general elections.
Additionally, Robinson said the level of detail of financial reporting by lobbyists is lacking when compared to some other states, as well as federal regulations. While reports require lobbyists to list how much was spent on categorical items for each legislator during a specific time frame, financial statements don't link spending to specific clients.
"There are certainly shortcomings in lobbying disclosure. First, there are thresholds beneath which activity doesn't need to be reported," he said. "If an individual lobbyist spends less than $58 (on food and beverages) a month on a lobbyable public official, that doesn't have to be reported. You can accumulate until you reach $350 in a calendar year. More serious than that is travel accommodations under $750, and financial transactions that don't have to be reported."
Financial transactions of $1,175 or more between a registered lobbyist or a lobbyist agent and a public official, a member of the public official's immediate family or a business with which the individual is associate must be reported. Travel and lodging paid for or reimbursed to a public official in connection with public business in excess of $775 must be reported. Food and beverage expenses for public officials in excess of $58 in any month, or $350 for the year must be reported to the state Bureau of Elections. Gifts, such as a payment, advance, or anything of value which exceeds $58 during any one-month period are prohibited from being given to public officials from lobbyists or lobbyist officials.
"So, if a lobbyist makes a loan to a public official's wife or son (for less than $1,175), and never asks for it to be repaid, that would never have to be reported," Robinson said.
Financial report summaries must be filed twice each year by all lobbyist and lobbyist agents, even if they haven't had any activities or expenditures to disclose for the reporting period. Reporting periods run from Jan. 1 to July 31, and from Aug. 1 to Dec. 31 each year. However, Robinson said timing of the information is lacking because the filing deadline for the reports are Aug. 31 and Jan. 31, which means most recent information isn't available to the public until after the primary and general elections.
Additionally, Robinson said the level of detail of financial reporting by lobbyists is lacking when compared to some other states, as well as federal regulations. While reports require lobbyists to list how much was spent on categorical items for each legislator during a specific time frame, financial statements don't link spending to specific clients.
"They have to list gross spending for a period, and
they have to name clients, but they don't have to report how much they
spent representing those clients," Robinson said. "That contrasts with
federal reporting, or a place like Wisconsin."
Connecting spending to specific clients, Robinson said, essentially provides how much money was spent on a particular bill, by tracking which clients pursued what issues. "You don't pick up any of that detail, here," he pointed out.
Connecting spending to specific clients, Robinson said, essentially provides how much money was spent on a particular bill, by tracking which clients pursued what issues. "You don't pick up any of that detail, here," he pointed out.
