© 2012, Des Moines Register and Tribune Co.
Special-interest groups and public entities have spent more than $1 million to wine, dine and entertain Iowa lawmakers, state officials and visiting dignitaries in the three most recent legislative sessions, a Des Moines Register analysis of lobbyist spending shows.
The events ranged from informal muffin and coffee breakfasts costing less than $200 to lavish parties with shrimp, roast beef, imported cheeses and unlimited cocktails, where special interests picked up tabs that reached into five and — in one case this year — six figures.
From 2010 through March 16, interest groups representing businesses, public agencies, nonprofits, labor unions, trade associations and others have treated lawmakers to 455 legislative functions costing $1,034,576. As many as five such events have been scheduled for one day.
Database:Find out the costs of Iowa lobbying events
Laws: A review of all 50 state laws on gift restrictions
Among the legislative perks: two tickets offered by the Iowa Corn Growers Association to each lawmaker for the Iowa Corn Indy 250 and a reception at the Iowa Speedway in Newton last summer. Tickets to the IndyCar series race normally sell for $50 to $60 each.
For individual elected officials, Iowa has a stringent law governing gifts, limiting their value to $3 or less, about the price of a coffee shop java. But what some consider a loophole allows unlimited spending on food, drinks and entertainment at functions during the legislative session when all legislators are invited — a time when function sponsors are often lobbying for or against bills.
Had the Iowa Corn Indy 250 tickets been offered to just one lawmaker — or to five, or even 149 — the corn growers group would have violated state law intended to prevent unfair influence and legislative bribery. But if all 150 House and Senate members are invited, sponsors can spend as much as they want, provided they disclose the costs in reports filed with the Legislature’s chief clerk.
No other state is believed to have such an exemption, even though some have relatively liberal gift laws that government watchdogs say do little to curb political payola.
Expert: Do practices pass ‘smell test’?
Some lawmakers defend the practice, saying the events help them learn about issues and build essential relationships. They point to decades-old scandals and contend today’s system is far cleaner. Since the majority of events serve appetizers, they resist the notion they are provided free meals most nights they’re in session.
But experts who have reviewed the data compiled by The Des Moines Register said the numbers raise deep questions about whether government is for sale in Iowa.
“A meeting or event that is before the session and is just a part of a ‘get to know you’ is one thing, but when you start having actual gifts like tickets to … car races, that’s when we always want to give the smell test,” said Edwin Bender, executive director of the National Institute on Money in State Politics, a nonpartisan, nonprofit watchdog group that monitors the influence of lobbyists on state government.
Unlike some government reform advocates, Bender says he believes such events can be a good thing — in moderation. They can provide lawmakers an opportunity to meet with those who have a stake in legislation under consideration and gain a deeper understanding of why such groups support or oppose bills, he said.
But, Bender said, the lack of limits on what special-interest groups can spend means Iowa lawmakers have — perhaps unintentionally — opened themselves to ethical questions.
“Lobbying is a place where there is a tremendous amount of influence exerted, and it’s a place where there is a tremendous lack of transparency,” Bender said.
From juice, pastries to lavish spreads
A Register reporter attended more than a dozen such events in the past month. Some, like one held in the Capitol on Feb. 28 by the Chrysalis Foundation — a group that advocates for women and girls — were morning meet-and-greet events. Lawmakers and anyone else who wanted to learn more about the group were offered juice, coffee and pastries in what organizers estimated would cost under $200. The group as of late last week had not registered a position on any particular bill.
But other events were more extravagant. Upper Iowa University, for example, rented the Des Moines Botanical Center’s domed garden center on Feb. 29, providing catered appetizers and free drinks to those attending, including Lt. Gov. Kim Reynolds. Organizers were unsure how much they would spend and have not yet submitted a function report to the chief clerk’s office detailing the costs. But records show that Upper Iowa, a private school, spent about $7,000 each of the past two years hosting similar events at the same location.
Upper Iowa has not registered support or opposition on any bill this year. However, the school’s officials say legislative actions affect the school and its students, and they want to remind lawmakers of their school’s importance. Such matters as tuition grants for in-state students are critically important to the institution, they note.
“The laws that they make affect our students just like other students,” Monica Bayer Heaton, a spokeswoman for the school, said while at the Botanical Center reception.
“I love it,” Reynolds said soon after entering the event. “It’s a great opportunity for us to step in and talk to whatever association it is and hear firsthand what they’re doing or talk about what we’re doing.”
Officials see events as part of their jobs
Gov. Terry Branstad on Feb. 28 attended an event sponsored by Quad Cities Chamber of Commerce at the Americana Restaurant and Lounge in downtown Des Moines. The event included appetizers and free drinks. A reporter counted five lawmakers in attendance, as well as dozens of lobbyists, state department officials, legislative staffers, business leaders and chamber members.
Branstad said he doesn’t believe those who sponsor such events gain an advantage against groups who don’t. He said he and Reynolds travel to all 99 counties in Iowa each year, providing a chance for people not affiliated with groups that sponsor lobbying activities to be heard.
“I just think that part of being governor is being accessible and available to people, and that’s why we try to get to these type of events, too,” said Branstad, holding a glass of wine. “Look, these are community leaders. They made the effort to come to Des Moines.”
Legislators say they often feel pressure to attend the events, particularly those hosted by groups based in their home districts. Sen. Bill Dotzler, D-Waterloo, a 16-year veteran of the Legislature, said there seems to be far more events now than when he was first elected.
“If you don’t show up, when you go back to your public forums, they come up and say, ‘I was down there and missed you,’ ” he said.
Dotzler said such events give lawmakers an opportunity to socialize with one another, including members of the rival political party. Such bonds can help overcome political rifts and pave the way for compromise, he said.
Dotzler said before the $3 gift limit passed in 1993, lobbyists would simply invite certain lawmakers to dinner and pick up the tab. He favors the group functions over that practice.
“Because of the lobbyist law, we started getting into the receptions where everyone is treated equally and fairly, and I think that’s a good thing,” he said.
Race tickets a means ‘to discuss … issues’
Government reform advocates still buzz over last summer’s Iowa Corn Indy 250 race, including a 4½-hour reception, sponsored by the Iowa Corn Growers Association. The annual event features drivers such as Helio Castroneves and Danica Patrick and is one of the Speedway’s biggest draws, attracting up to 40,000 racing fans.
The association estimated that each invited guest to the June 25 reception cost the association about $80. The group declined to provide a list of lawmakers who attended. However, the report filed to the state last year listed costs totaling $2,002, which would amount to 25 attendees.
Had all 150 lawmakers and their guests accepted the invitation, the tab would have been $24,000.
Usually, the Legislature adjourns long before June 25, so the association couldn’t have invited the legislators. But last year, protracted budget negotiations kept legislators meeting until June 30, the third-longest session in state history. Invitations spelled out that if the Legislature adjourned before June 25, lawmakers could choose not to attend or to pay the association for the value of the ticket and reception.
Corn Growers spokeswoman Mindy Poldberg said her group consulted with the Iowa Ethics Campaign Disclosure Board before the event to make sure it was allowed under Iowa law.
“It was an opportunity to discuss our legislative issues with the legislators while they’re there from across the state,” she said.
Among the issues the Iowa Corn Growers Association has lobbied on during the 2011 and 2012 General Assembly is a bill that opponents have labeled the “ag gag” law. A person who obtains access to a farm facility by false pretenses or lies on a job application with the intent to commit an act not authorized by the owner could face serious or aggravated misdemeanor charges. Critics say the bill treads on free speech rights. The Legislature passed the bill, and Branstad signed it into law this year.
Do big events lead to legislative wins?
The expenses listed in lobbying reports may not give a full picture of an event’s experience. Hy-Vee initially listed almost $43,000 in expenses for an event Jan. 26, 2011, at the grocer’s conference center in West Des Moines. All 150 legislators received invitations, and each was invited to bring a guest. About 250 Hy-Vee employees also attended.
But when asked about the event by the Register, spokeswoman Ruth Comer said the report was filled out incorrectly. She said the actual cost was $6,818, and an amended report would be submitted as early as Monday. Comer said the company improperly listed retail costs for food, drinks, labor and use of the company’s conference center, rather than the wholesale costs it actually incurred.
The law requires “a report disclosing the total amount expended, including in-kind expenditures.” It leaves ambiguous the question of wholesale versus retail figures, said Charles Smithson, chief clerk of the House.
Comer described the event as “a really nice opportunity for us to give them some feedback about how things would affect our customers,” and said “we typically don’t have a large number of issues we’re lobbying on.”
Hy-Vee’s lobbyists have registered on at least 158 bills in the current two-year General Assembly.
One example: The grocer opposes expanding Iowa’s bottle bill to include non-carbonated beverage containers such as water bottles. Advocates say mandating a 5-cent deposit like the one required for containers of alcohol and carbonated drinks would lead to recycling of 500,000 more containers a year.
Expanding the bottle bill has come up in the Legislature several times over the past 20 years. On March 6, it was crushed again, by a Senate subcommittee. It now appears the Legislature will ask that the matter be studied another year.
Troy Willard, owner of the Can Shed recycling center in Cedar Rapids, has tried to persuade lawmakers to expand the deposit. He thinks big events such as those held by Hy-Vee give the company an advantage with lawmakers that people like him can’t match.
“If you look at the polling and the benefits of the bottle bill, it’s a no-brainer,” Willard said. “The bill should have been expanded a long time ago, but those guys are out protecting their interest, so they’re able to stymie any type of efforts that way.”
Some see solutionin spending limits
Adam Mason, who lobbies for Iowa Citizens for Community Improvement, believes virtually all after-hours legislative lobbying functions should be eliminated so that sponsoring groups have the same access to legislators as the general public.
Sen. Mark Chelgren, R-Ottumwa, said he has written legislation to help address the problem by limiting — but not prohibiting — spending for groups that wine and dine lawmakers. No bill was introduced this session because he missed legislative deadlines.
Chelgren wore his name stitched to the back of his suit jacket while appearing on the Senate floor earlier this month to protest the influence of lobbying activities in the Legislature.
“I wanted to have a conversation about whether or not we should be listing our primary sponsors on our sleeves or clothes, so — like a race car driver — people would know who sponsored us and who promotes us,” Chelgren said. “I think when you talk with somebody, they should know where you stand on issues.”
An outright ban of the activities could drive conversations between lawmakers and special interest groups underground, beyond the scope of public scrutiny, Chelgren said.
“I would rather groups like Hy-Vee say, ‘Hey, here’s what we’re doing. It’s a bipartisan group, and we’re going to bring everybody in, and we’re going to talk about what we think is important for the health of the community,’ ” he said. “They do it in the open versus behind closed doors.”
Chelgren has not yet decided where the spending limit should be.
But Iowans got another taste of just how expensive such events can be last month, when the Iowa Economic Development Foundation footed the cost of a reception and dinner in honor of Chinese Vice President Xi Jinping, inviting every legislator, other state officials and community and business leaders.
The final tab: $119,409, the first time a function has climbed to six figures. The foundation has existed in some form since 1966. In recent decades, state economic development officials have used the foundation to raise private dollars to pay for activities they would feel uncomfortable paying with tax dollars, said spokeswoman Tina Hoffman.
Peggy Kerns, director of the Center for Ethics in Government for the National Conference of State Legislatures, thinks it’s time for Iowa to consider reviewing its lobbying laws.
“The point is to go back to the purpose of gift laws, which is to make sure that lawmakers are not influenced by special interests in their making of public policy,” said Kerns, a former Colorado legislator.