Current through Register Vol. 18, September 20, 2024
(1) A principal shall report the cost of
entertainment and social events, including but not limited to meals, parties,
cocktail parties, shows, movies, buffets, receptions, sporting events,
membership fees for clubs, or other similar functions, as follows: payments
made by the principal, the lobbyist, or an individual engaged in lobbying
activities for the benefit of the public officials who attend the event,
including tips or gratuities, must be reported as a lobbying expenditure and,
if applicable, itemized as provided in
5-7-208(5) (b),
MCA, if:
(a) if one or more public officials
are invited and attend the event, all payments made by the principal, the
lobbyist, or an individual engaged in lobbying activities for the benefit of
the public officials who attend the event, including tips or gratuities, must
be reported as a lobbying expenditure and, if applicable, itemized as provided
in 5-7-208(5) (b),
MCA, if:
(i) a principal's lobbyist, employee,
officer, agent, attorney, or individual engaged in lobbying activities lobbies
a public official during the event;
(ii) the event includes a program by a
principal's lobbyist, employee, agent, attorney, or officer concerning proposed
or pending official action; or
(iii) the event is paid for at the request or
suggestion of a lobbyist or an individual for the purpose of supporting or
assisting a lobbying activity.
(2) To determine whether the itemization
requirements of
5-7-208(5) (b),
MCA, apply, a principal shall calculate the benefit to a public official as
follows:
(a) If the benefit to a public
official can be determined based on actual expenditures made, then actual
expenditures must be used to determine whether the itemization requirements of
5-7-208(5) (b),
MCA, apply. For example, Principal White Hat's lobbyist takes two state
representatives to dinner to lobby for their support of Principal White Hat's
legislation. Rep. B orders a $30 dinner and $15 in drinks. Rep. S is ill and
orders only a salad and a glass of milk (total cost for Rep. S, $6). The
lobbyist spends $26 on himself. The total bill, including tip, is $89.
Principal White Hat must report $51 ($45 for Rep. B and $6 for Rep. S), plus a
proportionate share of the tip, as an entertainment expense and must report $45
plus a proportionate share of the tip as a benefit to Rep. B under
5-7-208(5) (b)
(i), MCA. Rep. S does not have to be
identified under
5-7-208(5) (b)
(i), MCA, because the personal benefit to him
was less than $25 and the $100 separate itemization requirement of
5-7-208(5) (b)
(ii), MCA, does not apply because the event
cost less than $100.
(b) If the
benefit to a public official cannot be determined based on actual expenditures
because of the size or type of event (e.g., a large reception for all 150
legislators with an open bar which is also attended by a large number of other
lobbyists, principals, and friends), the benefit to a public official in
attendance shall be determined based on the total cost of the event, including
tips or gratuities, divided by the total number of attendees. The per capita
cost of the event becomes the benefit to each public official who attended the
event. If the per capita cost of the event is $12 per person and 30 legislators
attend the event, then $360 must be reported as an entertainment
expense.
