Jan 24, 2006 -- Statement of Trevor Potter on Lobbying Reform

The following is the statement of Trevor Potter, president and general counsel of the Campaign Legal Center. Mr. Potter is a former commissioner and chairman of the Federal Election Commission.

Historically, periods of major ethical controversy in Washington have served as action-forcing events that led to important moments of reform. The Watergate scandals contributed to the campaign finance reforms embodied in the Federal Election Campaign Act of 1971 and its 1974 amendments. Enron's collapse and ties to federal leaders helped mobilize supporters of McCain-Feingold. The House banking, franking, and post office scandals also led to genuine reform of those offices.

The current scandals over disreputable lobbying and campaign finance practices provide a similar window of opportunity. Now, while the public's attention in focused squarely on the problems before us, is the time to act to really change the way business is done in Washington.

This is an ideal moment for members of Congress to show the nation that this is a bipartisan problem that requires a bipartisan solution. Unfortunate as this scandal is, it also creates the right dynamic for cooperation across the aisle to enact substantive reforms. There are now serious reform proposals from both parties in Congress, and there is significant agreement on some key improvements in lobbying rules. Members of both parties need to send the signal that they can work together to deal with these problems in the public interest.

Bipartisan action is also in the interest of Congress as an institution. As the Abramoff and Cunningham scandals make painfully clear, when Congress fails to police itself, the Department of Justice will do so instead. The fact that these matters are now playing out as criminal proceedings in the federal courts is a direct result of the failure of members of both parties - and particularly, of the congressional ethics committees - to keep their own houses clean. Congress has the constitutional authority - and obligation - to keep its own house in order. It is not in Congress' interest for the Executive Branch's Department of Justice to be investigating sitting members of Congress - but that is the result if Congress does not police itself.

As a former Chair of the Federal Election Commission, I can tell you that reform will only succeed in changing norms if it is enforced. Much of the current scandal involves activity that is already illegal or in violation of House/Senate rules - what has been lacking is the will and the process to enforce the current rules. These rules have been weakened in the years following their enactment when they became inconvenient to some congressional leaders, and then members of the House Ethics Committee were punished for trying to do their job. Any new rules will likewise fail without an independent Congressional enforcement office - an Office of Public Integrity, as the Coalition proposal suggests, or an equivalent office in the Congress, independent of whichever party happens to be in the leadership at any moment.

The six benchmarks we are jointly proposing today are, we believe, the right blueprint for Congress to follow as members work through these issues. Taken together, these recommendations would take long strides toward breaking the corrupting nexus between lobbyist, lawmakers and their clients, slow the revolving door between public and private life, and significantly increase the transparency of lobbying activities. In my view, however, the other five will ultimately not be effective without a strong enforcement office in the Congress.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Six Benchmarks for Lobbying Reform

During the coming months, the House and Senate will consider reforms to respond to the lobbying scandals in Washington that deeply concern the American people.

A CNN/USA Today/Gallup poll (January 10, 2006), for example, found that "corruption ranked among the concerns most often cited by those polled, with 43 percent telling pollsters it would be an 'extremely important' issue in 2006," just two percent below the 45 percent response for the war in Iraq and terrorism.

Our organizations are releasing today six benchmark lobbying reforms that should be used to judge the proposals being considered by Congress in the next few months. The organizations include the Campaign Legal Center, Common Cause, Democracy 21, the League of Women Voters, Public Campaign, Public Citizen and U.S. PIRG. We will work to enact these important reforms.

While we are focusing primarily on lobbying reforms today, we want to make clear that campaign contributions are at the heart of the lobbying and corruption scandals now engulfing Congress. In addition to the immediate battle for lobbying reforms, it is essential in the end to achieve fundamental campaign finance reforms, most importantly public financing of elections, if we are to restore the integrity and health of our democracy.

Our organizations will work to fix the presidential public financing system in time for the 2008 presidential election and to extend public financing to congressional races. We will also work for other essential campaign finance reforms, including replacing the Federal Election Commission with a real campaign finance enforcement agency, closing the loophole for 527 groups and abolishing leadership PACs. We also recognize that structural reforms of Congress must be enacted to address the lobbying scandals, including reforms to address the misuse of "earmarks," and that other procedural reforms are necessary to ensure a fair and democratic legislative process.

In terms of lobbying reform, we are proposing six essential benchmark reforms. They include proposals that have overwhelming public support. A Washington Post/ABC News poll (January 10, 2006), for example, reported that ninety percent of the American people believe that it should be illegal for lobbyists to give members of Congress gifts, trips or other things of value. Two-thirds of the American people, according to the poll, believe it should be illegal for lobbyists to make contributions to Members and other federal candidates. Our organizations support the following benchmark reforms.

1. Break the nexus between lobbyists, money and lawmakers.
Cap contributions from lobbyists and lobbying firm PACs to federal candidates at $200 per election and to national parties and leadership PACs at $500 per election cycle.

Prohibit lobbyists and lobbying firms from soliciting, arranging or delivering contributions and from serving as officials on candidate campaign committees and leadership PACs.

Prohibit lobbyists, lobbying firms and lobbying organizations from paying or arranging payments for events "honoring" members of Congress and political parties, such as parties at national conventions, and from contributing or arranging contributions to entities established or controlled by members of Congress, such as foundations.

2. Prevent private interests from financing trips and from subsidizing travel for members of Congress and staff, and executive branch officials and federal judges.

Corporations and others should be prohibited from making privately-owned planes available for Members to travel at the cost of a first class air ticket rather than the cost of a chartered plane.

3. Ban gifts to members of Congress and staff.

The gift ban should close the existing loophole in the gift rules that allow lobbyists and others to pay for parties held to "honor" or "recognize" specific Members, such as the lavish parties held at the national party conventions.

4. Oversee and e nforce ethics rules and lobbying laws through an independent congressional Office of Public Integrity and increase penalties for violations.

Establish an independent Office of Public Integrity in Congress and provide sufficient resources for the Office to effectively carry out its responsibilities.

The Office should monitor and oversee financial disclosure and lobbying reports; advise Members, staff and lobbyists on compliance with the rules; conduct investigations of non-frivolous allegations of ethics violations, including complaints filed by Members and outside individuals and groups; present cases involving potential ethics violations to the congressional Ethics Committees for consideration and action; and refer potential lobbying law violations to the Justice Department for civil enforcement.

5. Slow the revolving door.

Prohibit members of Congress and senior executive branch officials from making lobbying contacts or conducting lobbying activities for compensation in either branch for two years after leaving their positions.

Prohibit senior congressional staff from making lobbying contacts for compensation with their former offices or committees for two years after leaving their positions.

6. Place sunshine on lobbying activities and financial disclosure reports.

Require lobbying reports and Members' financial disclosure reports to be filed in an electronic format and made fully searchable on the Internet; lobbying reports to be filed on a quarterly basis; lobbyists and lobbying firms to disclose grassroots lobbying activities; lobbyists to file a list of the Members' offices and congressional committees they lobbied during the quarter; and reports to be filed disclosing the financial backers of stealth lobbying coalitions.

# # #

To view a side by side comparison of the current lobbying reform bills and proposals, click here.