LOBBYIST REGISTRATION & REGULATION

The Illinois Constitution ensures that the state's 12.9 million citizens have the right to make their views known to their elected representatives. Each day citizens exercise this right in small ways. They talk to their lawmakers during community meetings, write letters, make phone calls, sign petitions, vote in elections and contribute funds to political campaigns.  

The state constitution does not address the rights of the state's 2,200 lobbyists, but it is clear that these "hired guns" are also free to press their perspectives with lawmakers. By several measures, professional lobbyists are highly effective at influencing legislation, administrative rules, contracts and budget line items important to their clients.

Most lobbyists are honest people. Some lobbyists, however, have used their access to powerful politicians to profit illegally from state government. These political insiders have used lobbying contracts to cloak illegal payoffs, shakedowns, and extortion schemes. This conduct often goes unnoticed for years due to Illinois' weak lobbying registration, reporting and disclosure requirements.

Lawrence Warner and Donald Udstuen could serve as the poster children for lobbying reform. After George Ryan's election as Secretary of State in 1990, Warner launched a lobbying career to capitalize on his friendship with Ryan. Warner enlisted the help of Udstuen, a lobbyist for the Illinois State Medical Society.
Over the next eight years Warner, Udstuen and Ryan engaged in various conspiracies to extort payments from vendors. Millions of dollars in kickbacks were collected from vehicle sticker makers, computer services contracts, facility leasing contracts and photocopier leasing deals. Warner was eventually slapped with a 41-month prison sentence. Udstuen was given an eight-month sentence after cooperating with federal prosecutors.
More recently, lobbyists close to former governor Rod Blagojevich allegedly shook down industry groups and state contractors for campaign contributions. Lobbyist Alonzo "Lon" Monk, Blagojevich's former chief of staff, is a co-defendant in the criminal indictment against Blagojevich. The government alleges Monk tried to extort a substantial campaign contribution from the owner of two horse racing tracks. At the time, a bill benefiting the racing industry was awaiting Blagojevich's signature.

One of the major differences between Illinois' 12.9 million residents and its 2200 lobbyists is that very little is known about the later group's activities influencing state government. Until recently, the Lobbyist Registration Act required lobbyists to do little more than: register annually; disclose the names of clients; and, provide brief lists of expenses. The Center for Public Integrity recently ranked Illinois 45th in an evaluation of registration, spending, transparency and enforcement requirements in state lobbying statutes. Only South Dakota, New Hampshire, Wyoming and Pennsylvania maintain fewer requirements for professional lobbyists than Illinois. 
By way of comparison, Wisconsin requires biannual reporting of all expenditures on lobbying activities including: payments to contract lobbyists; compensation and fringe benefits paid to in-house lobbyists; travel and living expenses; and, purchases of research, printing, advertising and other services. Even Cook County and the City of Chicago require greater disclosure from lobbyists than the State of Illinois.
ICPR is not opposed to lobbying; we lobby on a regular basis. But Illinois must enhance its regulatory standards and create procedures that expose corrupt practices. ICPR specifically supports reforms that ensure wider degrees of disclosure, transparency, ethical conduct and enforcement.

The state made some progress in May 2009 with passage of Senate Bill 54. Those reforms included an expansion of the definition of "expenditures attributable to lobbying" and more frequent disclosures of such expenditures especially during legislative sessions. S.B. 54 also created annual ethics training requirements for lobbyists and gave the Office of the Secretary of State additional powers to investigate complaints with respect to lobbying and impose penalties.

While these improvements are encouraging, more must be done. Organizations and individuals lobbying state government should be required to disclose the terms of their contracts with clients including all fees paid. Lobbyists should also disclosure the names of state officials and agencies contacted for lobbying purposes. In addition, Illinois' lobbying statutes should be revised to broaden the scope of lobbying and more clearly define who must register as a lobbyist. Finally, ICPR favors a "cooling off" period between the date a government employee leaves public service and his or her lobbying former colleagues.