Jan 26, 2008 -- National Journal: Lobbying & Law - Party Time!
By: Peter H. Stone

When Congress passed tighter ethics rules last year, Rick Shelby, the executive vice president of the American Gas Association, and other business lobbyists grew worried that the law would clamp down on the popular K Street pastime of throwing lavish parties to fete members of Congress at the quadrennial summer political conventions.

Shelby and others fretted in particular about language in one provision: A lawmaker no longer may "participate in an event honoring that member" if a registered lobbyist or a group that employs lobbyists is paying for the party.

But late last year, the House Standards of Official Conduct (Ethics) Committee issued a rule interpretation that had Shelby and other power brokers breathing easier. In a guidance memo, the committee said that the new curb applies only to events honoring a "specific member"; thus, those events honoring multiple members (who belong to delegations or caucuses, for example) apparently are permissible, so long as organizers do not list the members' names.

Further, the House guidance memo indicated that the new rule applies only to events that are "directly paid for" by lobbyists, suggesting that it is OK for members to attend events sponsored by a governors' association, for example, or by state entities, that are partly underwritten by lobbying groups.

"I was pleased to learn that the provision wasn't as draconian as I had anticipated," Shelby says. The conventions, he adds, "are a wonderful opportunity to raise the profile of your industry and your association. It would be foolish not to take advantage [and] to raise issues important to your industry from an advocacy point of view."

Still, to stay within the rule, a large part of the AGA's convention activities "will be focused on state officials and governors" because members of Congress are clearly allowed to attend such events and, thus, "are likely to come," Shelby says.

Shelby 's tactic is one that several other trade groups are sure to follow: The AGA, in fact, is negotiating to co-host events with the American Petroleum Institute and the National Mining Association.

The House interpretation has incensed watchdog groups such as Common Cause, Democracy 21, and Public Citizen. In December, the groups wrote a letter slamming the Ethics Committee for opening "gaping loopholes" and said that the House guidance "contravenes and emasculates the meaning, purpose, and spirit of the new ethics rules." The groups are looking to the Senate Ethics Committee, which has not yet issued its interpretation of what's allowable for senators regarding lobbyist-sponsored parties at the conventions.

For now, trade groups, corporate offices, and lobbying shops seem to be taking their cues from the House ethics memo, as they develop party plans for the Democratic convention to be held in Denver in late August and the Republican parley set for early September in Minneapolis-St. Paul.

Associations in the energy sector are planning big events -- the Edison Electric Institute is partnering with the Nuclear Energy Institute, says lobbyist Hannah Simone of the NEI, who used to work for the EEI. The two groups will put on at least one party at each convention, she says, but the final plan isn't set, as NEI officials are reviewing and vetting the rule "to make sure we're complying with the law."

Companies and lobbyists eager to organize events at both political conventions are doing plenty of creative thinking and party planning. Medical technology leader Medtronic, which is based in Minnesota , has historically not been involved in the conventions, says Peter Slone, the company's Washington lobbyist. But that is about to change because "the convention is in our own backyard."

Medtronic, he says, has made a seven-figure donation to the Republican convention host committee and is planning to hold events honoring at least two delegations from states where Medtronic has a large corporate footprint, such as Minnesota and California . "It's an opportunity to showcase our company to federal, state, and local officials," Slone says. Medtronic will also host policy forums and other activities to highlight its products and its contributions to local economies. He says that Medtronic intends to participate at the Democratic convention, too, but "at a lower level" financially.

Similarly, the Minnesota Agri-Growth Council is teaming up with some 25 local corporations to throw a big bash at the Republican convention, says Daryn McBeth, the executive director. The invitation-only event, which is expected to cost about $1 million, is aiming to draw as many as 3,000 people, including members of Congress, state delegations, and local officials.

The purpose, McBeth says, is to "showcase the food and agricultural industry" of Minnesota and other states to the throngs attending the convention. McBeth's group has lined up several leading donors, including Hormel Foods; CHS; Land O'Lakes; the Minnesota Corn Growers Association; and AgStar Financial Services. McBeth says he has also made money pitches to such big groups in Washington as the Food Marketing Institute and the Grocery Manufacturers Association.

Meanwhile, Steve Farber of Brownstein Hyatt Farber Schreck, one of the leading law and lobbying firms headquartered in the Mile High City , is serving on the executive host committee for the Democratic convention. Among the heavy-hitting corporations that have handed over seven-figure donations to the host committee to help pay for the convention are Coors, Qwest, Union Pacific, and Xcel Energy.

Farber is upbeat about serving on the host committee. "I did it," he explains, "because I thought it would be great for the city of Denver , the greater metropolitan area, the state, and the West." His law firm, Farber adds, is planning to host an event for the Colorado congressional delegation and is scheduling dinners with clients that could draw a mix of state officials and Washington lawmakers.

Other large law and lobbying firms are fine-tuning their plans. Akin Gump Strauss Hauer & Feld intends to honor one of its own stars -- Vernon Jordan , who is legendary for his ties to the Clintons -- at the Democratic convention. Akin Gump is also finalizing plans for a party at the GOP convention that will honor Florida 's convention delegates as well as members of Congress from that state, according to lobbyists at the firm.

Akin Gump shouldn't have trouble with access at the Republican convention, either. One of its top GOP lobbyists, Anthony Foti, is on loan to the convention, serving as director of external affairs.

Not surprisingly, Democratic-leaning Patton Boggs is mapping out party plans, too. Stuart Pape, the firm's managing partner and a Democrat, says he expects to have a "classy event that will be fun." Traditionally, Pape adds, the firm has partnered with clients to host events, which could happen again this year. In Denver , Patton Boggs may have an edge, given that the convention's CEO, Mike Dino, is a Patton Boggs lobbyist on leave. The firm is also expected to host a bash at the GOP convention.

Other lobbyists and consultants are working with trade groups and companies to devise their convention plans -- for a fee. Take Twin Cities Strategies, a consulting firm formed last year by six politically well-connected Minnesotans. It boasts a powerful former member of Congress from the state, Republican Vin Weber, now a lobbyist with Clark & Weinstock, and his brother, Joe Weber of Minneapolis . Joe Weber says that his firm has about a half-dozen clients, including the Minnesota Agri-Growth Council, whose big event will highlight Minnesota products from "ethanol to SPAM."

Likewise, the American Gas Association, the American Petroleum Institute, and the National Mining Association have hired Darrell Henry, a former lobbyist with the AGA and a partner at GOP Convention Strategies, a new consulting firm. Henry says that his convention clients include several trade groups, companies, some state delegations, and one union. Henry sounds bullish about party prospects at the conventions. "Finally, the rules of the road are out and people are making plans," he says.

Henry and other lobbyists point out that trade groups and companies are increasingly eyeing events in tandem with state-level entities such as the Republican Governors Association, the Democratic Governors' Association, and similar groups of state attorneys general. Indeed, the nonfederal RGA -- which raised a whopping $42 million (much of it in soft money) during the previous election cycle -- is likely to host two bashes at the GOP convention honoring the nation's 22 Republican governors, says the association's executive director, Nick Ayres.

"Corporations and trade associations are looking more closely at state-level groups than they have in the past," Henry says. That's probably good news for lobbyists hoping to schmooze with members of Congress and state politicos in fancy convention suites and skyboxes.