ILRC: Tuesday October 3 2000

Minutes
Indiana Lobby Registration Commission
Tuesday, October 3, 2000
Room 128-Statehouse
9:00 AM

Members present: Jan Abbs, Gerald Bepko, Jon Krahilik, Dennis Heeke

Staff present: Sarah Nagy, Executive Director/Counsel; Jim Holden, law clerk

The Chairman called the meeting to order at approximately 9:05 A.M. The Commissioners approved the minutes of the August, 2000 meeting.

Question Presented

(A) Whether pass-through income paid by a subchapter-S corporation to an individual who is a registered compensated lobbyist for that corporation must be reported as compensation for lobbying by the corporation, based on the amount of time spent lobbying by that compensated lobbyist?

The Commissioners agreed unanimously that the Executive Director is to draft a proposed advisory opinion consistent with the conclusion reached in the opinion letter of Tom Allington. Once again, the Chairman issued an invitation for comment and research from the lobbying community. The commissioners will decide in the December meeting whether to publish this proposed advisory opinion.

(B) TechNet sought clarification on FAO 97-07(A). Commissioner Gerald Bepko abstained from any discussion on this matter. The remaining commissioners unanimously agreed with the recommendation of the Executive Director that, in general, out-of-state lobbying expenditures are not to be included in determining whether an entity meets the "primary purpose" test in FAO 97-07(A). Unless TechNet lobbies equally in only two states, or unless it spends greater than half of its total budget on lobbying activities in Indiana, it would not have a primary purpose of lobbying in Indiana. The commissioners agreed that an answer to TechNet's question can be sufficiently reflected in the minutes of this meeting.

MISC

Staff report was given.

The meeting was adjourned at approximately 9:40 A.M.