Julia Vaughn: Sweetheart deal shows need for lobbying transparency

At the end of May I filed my bi-annual report of lobbying expenditures, as did my employer Common Cause Indiana, per the requirements of Indiana’s lobbying disclosure laws. It’s not a burdensome requirement for us, because our only reportable expenses are my salary and parking while at the Statehouse.

Unlike some lobbyists, we don’t wine, dine, or lavish expensive gifts on legislators, so there’s not much to keep track of and report.

I’ve faithfully filled out these reports for the more than three decades that I’ve been registered as a lobbyist, so it was disappointing to read a recent article in the Indy Star describing the actions of an Indiana-based gun manufacturer that is not only actively involved in the gun rights debate but is also offering sweetheart deals to Republican lawmakers under the regulatory radar screen.

The article examined the special offer that Fostech Inc., a family-owned gun manufacturer in Seymour offered to Republican legislators; a limited edition, customized AR-15-style rifle for about half the price a buyer off the street would pay. Even though this discounted deal will amount to Fostech making a gift to each legislator far exceeding the $50 disclosure threshold in state law, neither they nor the legislator will be required to disclose it.

Why? Because Fostech is not registered as a lobbyist, even though their actions certainly resemble lobbying. Last session two of their employees traveled to Indianapolis to testify on gun legislation and as the Star article documented, they’re actively seeking to build cozy relationships with legislators by offering them valuable items at huge discounts.

I would argue they meet the legal definition of lobbying – spending more than $500 annually attempting to influence legislation, and I’ve contemplated filing a complaint with the Indiana Lobby Registration Commission (ILRC) in an attempt to force them to register and disclose who took advantage of their sweetheart deal. But, my time is probably better spent tilting at windmills because the ILRC has a staff of three and little power to enforce the weak laws on the books.

It does make me wonder how many other situations like this exist; companies and wealthy individuals involved in advocacy at the Statehouse who spend significant amounts of money but don’t register as lobbyists. It’s bad enough that we get outdated and cursory information from those who do follow the law by registering and filing reports, but it’s disturbing to think there’s an underground channel of influence operating in the darkness of no disclosure.

In the future, one way to force the disclosure of these kind of transactions would be to require legislators to disclose all gifts they receive during their service as lawmakers, current law requires only the disclosure of gifts from registered lobbyists. Of course, the best approach would be to ban the acceptance of gifts all together, but that’s not likely to happen.

What could happen is that the Republican leadership of the House and Senate could direct the members of their caucus who took Fostech up on their offer to voluntarily disclose the discount they got for their customized rifle.

As long as these transactions remain hidden, it’s impossible for Hoosiers to know which members were potentially influenced by the gun maker’s generous offer. Votes were taken on several gun control measures this year, and the picture of influence won’t really be in focus if we don’t completely understand all financial transactions between gun rights advocates and lawmakers.

Even the Senate’s standing rules, not exactly the most restrictive of ethical standards, recognizes the potential problem created by the acceptance of gifts and discounts. The rules say that each lawmaker should use their own discretion as to whether accepting gifts or discounts will affect their “independent legislative judgement.”

That “to each his own” standard is utterly worthless without full disclosure. Hoosiers need more information about Fostech’s sweetheart deals with lawmakers.

Julia Vaughn is the Executive Director of Common Cause Indiana. Common Cause is a nonpartisan, grassroots organization dedicated to upholding the core values of American democracy. This commentary previously appeared at indianacapitalchronicle.com. Send comments to [email protected].