Lobbying is defined as “the practice of promoting or opposing the introduction or enactment of legislation before the legislature or legislators” (MCA 5-7-102(11)). Individuals who engage in these described activities may qualify as a lobbyist and be required to register as such.

Not everyone who engages in lobbying activity is required to register as a lobbyist under Montana law. The term lobbyist does not include:

• • 1- an individual acting solely on the individual´s own behalf,
  • 2- an individual who is not paid, or
  • 3- someone who is paid a total less than $2,900* to lobby. *subject to change per 5-7-112, MCA

Step 1: The lobbyist must register with the Commissioner of Political Practices by submitting a L-1 lobbyist license application. The L-1 application lists the name of the principal(s) the lobbyist will be working for, as well as the subject(s) or issue(s) the applicant will be lobbying for or against. A lobbyist must register within five business days after entering into an oral or written agreement to receive payment(s) of $2,900* or more or after receiving payment(s) of $2,900* or more for the purposes of lobbying the legislature.

Step 2: Pay the $150.00 lobbyist registration fee. This can be paid by either the principal on behalf of the lobbyist or the lobbyist personally. There is an option to apply for a waiver if the fee presents a hardship.

Step 3: The principal must file an L-2 Principal Authorization Statement or L-3 Principal Registration Application. This document authorizes the lobbyist to lobby on behalf of the principal.

If you pay anyone to support your lobbying efforts, you will also need to file as a principal. See Scenario 6 in this Guide for Required Lobbyist Forms.

The principal is responsible to report all payments and expenditures made to support or assist lobbying activity on L-5 Lobbying Financial Reports. If a report is filed late, the late fees are assessed to the principal ($50/day).

A principal and lobbyist can agree to have the lobbyist file the reports, but, again, the legal responsibility to file the reports is that of the principal.

Questions? We are here to help! Contact the Commissioner of Political Practices Office at (406) 444-2942, email cpphelp@mt.gov, or stop by the office at 1209 8th Avenue in Helena (one block north of the capitol).

A lobbyist and principal can terminate a lobbying relationship at any time, including before the legislative session ends.

To end a lobbying relationship, a principal must:

1. 1. File a final L-5 that covers the dates from the last submitted L-5 through the day the relationship was terminated. The final L-5 can be filed whenever it is know that the relationship is terminated.
2. 2. Send an email to cppcompliance@mt.gov stating the date the relationship between the specific principal and specific lobbyist is terminated.

If a principal makes (or plans on making) payments to a lobbyist or lobbyists for lobbying activity during a special session that exceed the $2,900 registration threshold, their registration and reporting requirements would fall under one of two scenarios.

Scenario 1: The principal has terminated the lobbyist(s) authorized to represent the principal at the conclusion of the regular legislative session:

• 1) The lobbyist would need to file a new L-1 application requesting to represent the Principal
• 2) The principal would need to file a new L-2 authorization authorizing that lobbyist to lobby on their behalf
• 3) The $150.00 lobbyist registration fee would need to be paid to complete the lobbyist application
• 4) The principal would be required to file a Post Special Session L-5 financial report 30 days after adjournment of the special session to disclose money spent on lobbying activity.
• 5) Both the lobbyist and principal would need to re-register because their original filings were terminated (i.e., the original filings are no longer valid because the COPP has been told the original agreement has been ended)

Scenario 2: The principal did not terminate the lobbyist(s) authorized to represent the principal at the conclusion of the regular legislative session:

• 1) The principal would be required to file a Post Special Session L-5 financial report 30 days after adjournment of the special session to disclose money spent on lobbying activity.
• 2) Neither the lobbyist or principal would need to re-register with the COPP, as their original filings would still be valid.

A "principal" is anyone who employs a lobbyist or a person required to report pursuant to MCA 5-7-208. Principals can also be lobbyists as well. Simply, anyone who pays another person or entity $2,900* or more for lobbying is a principal

*(subject to change per 5-7-112, MCA)

Any principal who makes payments or agrees to make payments exceeding $2,900* in a calendar year for the purpose of lobbying must complete and file a “Principal Authorization Statement.” Businesses, associations, government agencies and others who pay lobbyists to work on their behalf are also principals (See § 5-7-208 and 5-7-112, MCA; and § 44.12.202, ARM for more information.).

To decide what Principal Authorization Statement you need to fill out, ask:

1. -Have you paid or intend to pay more than $2,900* to an individual lobbyist to lobby on your behalf? If so, you must file a Principal Authorization Statement, form L-2, for each lobbyist you pay at least $2,900.
2. -Have you paid or intend to pay more than $2,900* to individuals to lobby on your behalf, but will not pay any individual lobbyist $2,900? If so, you must file a Principal Registration Application, form L-3.

 *subject to change per 5-7-112, MCA

Principals are required to report all payments and expenditures made to support or assist lobbying activity on L-5 Lobbying Financial Reports. The L-5 must include:

1) Payments or other monetary compensation provided to the lobbyist(s) authorized to lobby on the Principal’s behalf. This includes lobbyists who are paid but will not meet the threshold amount and are not required to register with the COPP;

2) The cost of support staff, administrative fees (office rent, internet, etc.), or travel expenses paid to support or assist lobbying activity;

3) Equipment, advertising, or supplies or social expenditures used to support or assist lobbying activity; and

4) Expenditures associated with entertainment events (dinners, banquets, socials, etc.) meant to lobby individual members of the legislature.

Reports must be submitted electronically via the COPP website in the lobbyist database, or via mail (P.O. Box 202401, Helena, MT 59620-2401), via fax (406-444-1643), or delivered in person to the COPP office (1209 8^th Avenue, Helena, MT). Please keep in mind that all reports MUST be received by the due date.

Report Due Dates:

1. February 15: Previous year Non-Session Year End Report, required for all lobbyists who had lobbying activity at any time previous non session year.
2. February 15: Mandatory L-5 report covering January 1^st-31^st . This report is required for all registered Principals, regardless of financial activity.
3. March 15: L-5 report required if you spent $5,000 or more between February 1st-28th.
4. April 15: L-5 report required if you spent $5,000 or more between March 1^st-31^st.
5. End of session report: Mandatory L-5 report due 30 days after the session adjourns. This report is required for all registered principals, regardless of financial activity.

There is a $50 per day late fee (up to $2,500) assessed to all principals for each day form L-5 is late.

Questions? We are here to help! Contact the Commissioner of Political Practices Office at (406) 444-2942, email cpphelp@mt.gov, or stop by the office at 1209 8th Avenue in Helena (one block north of the capitol).

A principal and lobbyist can terminate a lobbying relationship at any time, including before the legislative session ends.

To end a lobbying relationship, the principal must:

1. 1. File a final L-5 that covers the dates from the last submitted L-5 through the day the relationship was terminated. The final L-5 can be filed whenever it is know that the relationship is terminated.
2. 2. Send an email to cppcompliance@mt.gov stating the date the relationship between the specific principal and specific lobbyist is terminated.

If a principal makes (or plans on making) payments to a lobbyist or lobbyists for lobbying activity during a special session that exceed the $2,900 registration threshold, their registration and reporting requirements would fall under one of two scenarios.

Scenario 1: The principal has terminated the lobbyist(s) authorized to represent the principal at the conclusion of the regular legislative session:

• 1) The lobbyist would need to file a new L-1 application requesting to represent the Principal
• 2) The principal would need to file a new L-2 authorization authorizing that lobbyist to lobby on their behalf
• 3) The $150.00 lobbyist registration fee would need to be paid to complete the lobbyist application
• 4) The principal would be required to file a Post Special Session L-5 financial report 30 days after adjournment of the special session to disclose money spent on lobbying activity.
• 5) Both the lobbyist and principal would need to re-register because their original filings were terminated (i.e., the original filings are no longer valid because the COPP has been told the original agreement has been ended)

Scenario 2: The principal did not terminate the lobbyist(s) authorized to represent the principal at the conclusion of the regular legislative session:

• 1) The principal would be required to file a Post Special Session L-5 financial report 30 days after adjournment of the special session to disclose money spent on lobbying activity.
• 2) Neither the lobbyist or principal would need to re-register with the COPP, as their original filings would still be valid.