Secretary of state: Goldwater Institute attorneys should have registered as lobbyists – TucsonSentinel.com
Posted Jul 8, 2020, 11:03 am
Jeremy DudaArizona Mirror
TheSecretary of State's Office found reasonable cause that the GoldwaterInstitute, a Phoenix libertarian think tank and litigation center,violated a law requiring lobbyists to register with the state.
Sambo Dul, the state elections director for Secretary of State Katie Hobbs, referred the matter to the Attorney General's Office on Tuesday.
Dul'sfindings came in response to a complaint filed by an attorney with thelobbying and consulting firm HighGround, which clashed with GoldwaterInstitute over the issue of fees that Phoenix imposed on ride-hailingcompanies like Uber and Lyft that operate at Sky Harbor InternationalAirport.
JeffKros, an attorney at HighGround, filed a complaint with the secretaryof state in February arguing that two Goldwater Institute employees,Jonathan Riches and Christina Sandefur, should have to register asauthorized lobbyists because they testified in legislative committees infavor of a bill that would have barred cities from imposing additional fees on ride-hailing servicesthat operate at airports. HighGround represents the City of Phoenix andthe League of Arizona Cities and Towns, both of which opposed the bill.
Statelaw defines lobbying as "attempting to influence the passage or defeatof any legislation by directly communication with any legislator." Adesignated lobbyist is the person who is the "single point of contact"for an entity that engages in lobbying, while an authorized lobbyist isany other person who lobbies for that entity.
TheGoldwater Institute has long been an active player at the Capitol, andits employees testify frequently in committees. But the organizationonly has one person registered as a lobbyist with the secretary ofstate's office, and it contends that people like Riches and Sandefurdon't need to register because they fall under various exemptions.
However,Dul concluded that none of the exemptions applied, and said Riches andSandefur should have registered as authorized lobbyists for theGoldwater Institute.
TheGoldwater Institute argued that Riches and Sandefur were testifying asexperts on the issues at hand, and therefore fell under a lobbyistregistration exemption for people who testify to provide technicalinformation or answer technical questions. But Dul rejected that claim.
"Basedon the content of their testimony, Mr. Riches and Ms. Sandefur were notacting in the capacity of individuals who provide technicalinformation, but rather that of policy advocates urging legislators toadopt a desired position," Dul wrote.
Statelaw exempts "natural persons" who speak only for themselves fromregistering as lobbyists. And even though Riches and Sandefur registeredas supporters of the bill representing themselves, they identifiedthemselves in their testimony with their titles at the GoldwaterInstitute and repeatedly referenced "we" or "our" position on thelegislation.
Whilethere is an exemption for lawyers who are representing clients, Dulfound that Riches and Sandefur, both of whom are attorneys, were notactually representing clients when they testified. And though there's anexemption for members of an association, she concluded that theexemption wasn't applicable in this case.
AndDul rejected the Goldwater Institute's argument that requiring it toregister employees who testify in legislative committees as lobbyistswould infringe on its First Amendment freedom of expression or its rightto participate in government.
"Inthis case, requiring the Goldwater Institute to list employees aslobbyists before those employees appear before committees is minimallyintrusive, and would do nothing to limit their access to the committeesor the ability to communicate their desired message," Dul wrote.
Dulnoted that, in order to register additional employees as lobbyists, anorganization such as the Goldwater Institute that is already registeredwith the secretary of state need only fill out an online form and submitit within five days of the lobbying activity.
Kros was pleased with the secretary of state's findings.
"Allwe think is everybody should follow the same rules," he said, echoing acomplaint that some lobbyists at the Capitol have voiced about theGoldwater Institute for years.
The Goldwater Institute disagreed with Dul's findings and is still reviewing them, spokeswoman Jennifer Tiedemann told Arizona Mirror.Tiedemann said the nonprofit organization engages in policy analysis,education and litigation, and its employees spend the bulk of their timedeveloping and analyzing policy and litigating cases.
"Wehave one employee who lobbies for Goldwater, and she is registered. Onrare occasions, other staffers come to the Capitol at her request toprovide expert testimony, but they are not lobbyists. And, of course,none of these employees are making lobbying expenditures, which is theprimary purpose of the lobbying registration statutes," Tiedemann said.
TheAttorney General's Office confirmed that it received Dul's referral,which will be handled by its governmental accountability unit. AttorneyGeneral Mark Brnovich worked for the Goldwater Institute from 2003-2005.Spokesman Ryan Anderson said Brnovich won't be involved in theinvestigation, and noted that the attorney general has clashed severaltimes with the Goldwater Institute in recent years.
Ifthe attorney general finds that the Goldwater Institute must registerits employees and it fails to do so, it could face a fine of up to$1,000. Knowingly violating the lobbyist registration requirement is aclass one misdemeanor, punishable by up to six months in jail and a fineof up to $2,500.
TheGoldwater Institute has long resisted calls to register its employeesas lobbyists. It registered one person for the first time in 2011, but declined a request by then-Secretary of State Ken Bennett to register more of its employees.Over the past decade, there have been times when the institute hadmultiple employees registered as lobbyists at the same time. Currently,only Jenna Bentley, the organization's director of government affairs,is registered as a lobbyist.
This report was first published by the Arizona Mirror.
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