FINAL ADVISORY OPINION 97-02
Reporting Functions for All Legislators
Indiana Lobby Registration Commission
(Determination made at public meeting of July 22, 1997)
(Ratification, as nonmaterially amended, at public meeting of January 28, 1998)
VOTES ON RATIFICATION:
Chairman Bepko (in absentia) - yes
Vice-Chairman Krahulik - yes
Commissioner Hicks - yes
Commissioner Abbs - yes
Questions and written comments may be directed to
Indiana Lobby Registration Commission,
115 W. Washington, Suite 1375, Indianapolis, IN 46204
(317) 232-9860
When a lobbyist invites all members of the general assembly to an event, but only some attend, the expenditures do not have to be reported on a pro rata basis.
"L" lobbyist invites the entire general assembly, their spouses, and staff members to the NCAA Final Four playoff games. L provides meals and lodging for the weekend event. The total expenditure amounts to $75,000. Only 10 legislators attended the even t, along with 8 spouses, and 20 legislative staff members. L must report the cost of the entire expenditure, but L does not have to pro rate the cost of the event among those who attended.
Ind.Code § 2-7-3-3(a)(4) states that "whenever a lobbyist makes an expenditure that is for the benefit of all of the members of the general assembly on a given occasion, the total amount expended shall be reported, but the lobbyist shall not prorate the expenditure among each member of the general assembly." Another provision of the statute requires reporting of "[a] statement of expenditures and gifts that equal one hundred dollars ($100) or more in one (1) day, or that together total more than five hu ndred dollars ($500) during the calendar year, if the expenditure and gifts are made by the registrant or his agent to benefit (A) a member of the general assembly." I.C. § 2-7-3-3(a)(3).
Because I.C. § 2-7-3-3(a)(4) follows I.C. § 2-7-3-3(a)(3), we presume the legislature drafted (a)(4) with (a)(3) in mind. The effect and validity of (a)(4) applies in situations where expenditures are made on legislators as a group, whereas the effect an d validity of (a)(3) pertains to the situations wherein expenditures are made on individual legislators. The goal of disclosure amplified by the statute is met by reading the statutory provisions to pertain respectively to both situations.
The burden is on the lobbyist when subject to an audit pursuant to I.C. § 2-7-4-6, to establish that an expenditure reported under § 2-7-3-3(a)(4) was intended to benefit all members of the general assembly.