Fundraising Loopholes Allow Lobbyists to “Honor” Lawmakers at the Conventions

Publication: Congressional Quarterly Politics

Emily Cadei
August 26, 2008

The Democratic and Republican national conventions have long been the targets of big spending by corporations and interest groups looking to grab a piece of the political action. But they are also a rich target of opportunity for elected officials and candidates looking to pad their campaign wallets. And thanks to a loophole in the 2007 lobbying and ethics law, they also provide a channel for lobbyists to host fundraising events for individual lawmakers.

The law (PL 110-81) was supposed to cut down on the shoulder rubbing between lobbyists and lawmakers at conventions, prohibiting anyone that lobbies the federal government from holding events to honor a specific member of Congress. But as long as money passes hands, such gatherings are apparently legal because fundraising events are exempt from the ethics rules.

Virginia Rep. Eric Cantor , a fundraising powerhouse for the Republican party, and Democratic Sen. Frank Lautenberg, who is defending his New Jersey seat this fall, are taking full advantage of the fundraising exemption during the conventions. Lautenberg is attending a reception in his honor in Denver hosted by three registered federal lobbyists, as well as several other individuals. The suggested contributions range from $5,000 for political action committees co-hosting the event to $500 for individual guests.

The political action committees for the National Marine Manufacturers Association and the Association of Marina Industries are holding a Mimosa and Bloody Mary Breakfast “honoring” Cantor during the Republican convention next week in St. Paul. The Marine Manufacturers, which spent more than $400,000 on lobbying in the first half of 2008, is asking attending PACs to contribute a minimum of $1,000 to Cantor; individuals are being asked to contribute a minimum of $250.

Rep. Joe Baca , D-Calif., is also being honored in Denver at a golf outing to raise money for his re-election campaign. One of the hosts is a registered lobbyist for AT&T.

An aide to Cantor described his boss’ event as above board, noting that fundraisers are not subject to ethics restrictions.

But campaign finance watchdog groups say that members are walking a pretty thin line in holding such “hybrid” gatherings, regardless of what the rules say about lobbyist-sponsored fundraising events.

“I suspect they would get away with the fundraising event (under current ethics rules), but why would they cross the line?” asked Craig Holman of the non-profit group Public Citizen. “I would advise them to take that word ‘honor’ out of there.”

Other House members and senators are also holding fundraisers at the conventions, though many seem to be staying away from events set up to honor them or that are hosted by registered lobbyists.

In Denver, Rep. Ed Pastor of Arizona, for example, held a personal fundraising reception Monday evening at Sullivan’s Steakhouse. while Sen. Patty Murray of Washington and Minnesota Senate candidate Al Franken held afternoon fundraising events, according to the Sunlight Foundation, which is monitoring campaign fundraising and lobbyist-sponsored activities at the conventions.

All fundraising events for the Republican convention have yet to be announced, but some that have been publicized by the National Republican Campaign Committee include a “Welcome to Minnesota Golf Outing” to raise money for Rep. John Kline of Minnesota and a brunch benefitting the campaign of Rep. Jerry Moran of Kansas.