Attorney John Swallow and Utah Lobbying Regulations

One of the hottest news stories in Utah right now relates to Utah Attorney General John Swallow.  About one week after the November 6, 2012 election, Jeremy Johnson, a St. George businessman facing fraud charges in federal court, accused Swallow of helping to broker a deal where Johnson would pay Nevada Senator Harry Reid $600,000 to derail a Federal Trade Commission investigation of Johnson’s business.  Allegedly Swallow put Johnson in contact with Richard Rawle, a lobbyist and former employee, who fully arranged the deal.

Johnson points to several emails, two financial records, several photographs, and a transcript of a secretly recorded April 2012 meeting between Johnson and Swallow as evidence supporting his claim.  Both Swallow and Reid deny any such scheme.  Swallow admits receiving approximately $20,000 from Rawle's company around the same time that Johnson paid Rawle approximately $250,000, but claims the payments were for consulting work he had done on a proposed cement plant in Nevada.  In an affidavit from Rawle, signed three days before Rawle’s death in December 2012, Rawle admits that Johnson paid him $250,000 and to hiring lobbyists to try and help Johnson avoid the FTC lawsuit.  Rawle denies that the money was for a bribe.

The U.S. Attorney's Office for Utah has issued a statement confirming that Swallow is being investigated in coordination with the Department of Justice and the FBI, and Swallow has called for a full investigation.  I will wait until the results of the investigation to issue any personal judgment.  I respect any person willing to run for and work in political office.  Swallow should be given every opportunity to show he has not acted inappropriately.  This story, however, has raised some questions in my mind concerning the nature of lobbying.  What is lobbying, and how is it regulated?

Lobbying is "to conduct activities aimed at influencing public officials and especially members of a legislative body on legislation.[1]  Lobbying is done by many different types of people.  It can be performed by organized groups, such as the AFL-CIO and the NRA; influential individuals in the private sector; legislators; or government officials.  Indeed, typical citizens often lobby for their own causes by signing petitions, writing letters, and participating in peaceful protests.  Professional lobbyists are people whose business is trying to influence legislation on behalf of a group or individual who hires them.

Most people are not concerned with lobbying performed on a small scale.  For example, most people would not worry if one senator had lunch with another senator to try and persuade him to vote for a certain bill.  Many people, however, become concerned when lobbying is supported by powerful interest groups and big money.  For this reason, governments attempt to regulate professional lobbyists and make the lobbying process transparent.

In Utah, professional lobbyists must obtain a license from the lieutenant governor and provide information concerning their clients.[2]  The lieutenant governor can also refuse to grant a license if the applicant does not meet certain criteria.[3]

Perhaps the most important regulation governing lobbying activities in Utah is that a lobbyist cannot give or offer to give any governmental official any benefits that exceeds ten dollars within a single day, unless the lobbyist files a financial report with the lieutenant governor.[4]  Any expenditures over ten dollars can only be for food, beverage, travel, lodging, admission to a meeting or activity, or a purpose unrelated to the public official's position.[5]  Once a year, in January, professional lobbyists must report the date and purpose of their lobbying expenditures; the location of their expenditures; the names of the public officials benefitted by their expenditures; the types of public officials benefitted by their expenditures; and the total monetary worth of the benefits they conferred on any public official.[6]

Other interesting regulations include: a lobbyist's client cannot make payment contingent on a successful outcome;[7] lobbyists cannot contribute or promise to contribute to a public officials campaign while the legislature is convened in the general session;[8] and lobbyists must attend an ethics training course once a year.[9]  The penalties for violating the lobbying regulations range from fines and license suspension to a second degree felony for bribery.[10]

Lobbying, within carefully crafted regulations, is an important and appropriate part of the legislative process.  It educates our representatives on important societal issues that they may not be aware of.  Unfortunately, it can also become a cesspool for sweetheart deals and tit for tat exchanges.

I hope the ongoing investigation into Attorney General Swallow's relationship with Johnson clears his name.  Trust in our governmental leaders is eroding, and it would be sad to add his name to the list of politicians willing to sell their integrity for money.

---

[1] See Merrium-Webster's online dictionary

[2] Utah Code Ann. § 36-11-103

[3] Id.

[4] Id. at § 304

[5] Id.

[6] Id. at § 201(3)(c)(e).

[7] Id. at § 301.

[8] Id. at § 305.

[9] Id. at § 307.

[10] Id. at § 401 and Utah Code Ann. § 76-8-103.