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January 2006

News & Media

Memo From Washington 
January 20, 2006 

ALEXANDRIA, VA -- The aftermath of the political scandal sparked by Jack Abramoff has erupted into a contest between Republicans and Democrats to see who can enact the most “reform-oriented” piece of legislation--legislation aimed at keeping “special interest lobbyists” from unduly influencing members of Congress and their staffs.

To a certain extent, as a “special interest lobbyist,” I now understand and personally relate to the cheap shots NACS retailer members endure, for example, when gasoline prices rise and the public uses retailers as a scapegoat--all the while expecting simple “solutions” to complex problems.

Politically popular statements that declare lobbyists are blocking citizens from accessing their elected representatives are absurd. The NACS Government Relations Committee and NACS staff assimilate the collective opinions of NACS members and present this agenda to Congress in a clear and concise manner. Without such representation, the 2,200 NACS retail member companies and their employees would have to personally contact and meet with their legislators--a very inefficient and cumbersome process. Lobbyists are not evildoers; they are the facilitators of communications.

Regardless, lobbyists are the target for “reform,” and what comes from the political rhetoric remains to be seen. Currently up for grabs are several provisions, including:

  • Banning all privately funded travel for members of Congress and congressional staff, whether for educational purposes or not. This will effectively cancel all future NACS Petroleum Tours, which have been incredibly successful in educating key congressional aides regarding the operations of the petroleum industry by taking them on a tour of a refinery, pipeline, terminal and retail facility
  • Banning or further restricting all gifts to members of Congress and congressional staff, including meals and entertainment
  • Extending the ban on lobbying for former members of Congress and senior congressional staff from one to two years
  • Creating additional reporting requirements for lobbyists, including disclosure of grassroots related activities
  • Subjecting lobbyists to criminal penalties for violation of lobbying rules

One bright spot in this murky political pool is a proposal by Rep. Mike Rogers (R-MI), which, among other provisions, would effectively close the Native American campaign contribution loophole that currently enables tribes to convert money derived from tribal business operations (known as “soft dollars” in corporate America) into campaign contributions (known as “hard dollars”). This practice allows tribes to funnel millions of dollars into the election system--a practice for which non-tribal citizens could be charged with “money laundering.”

The loophole further exempts tribes from the aggregate limits on contributions that apply to other individuals, thus enabling them to contribute the maximum amount allowed under the law ($5,000 per election campaign) to as many candidates as they choose. Rogers’ proposal would hold these tribes to the aggregate limits established under campaign finance law.

NACS sought to close this loophole several years ago during the campaign finance reform debate--only to be shut out by those influenced by the Native American tribes.

We applaud Rogers for taking off the gloves and actually seeking well-intended reform. Now, if only his colleagues would focus their attention on where the actual problems lie, rather than seek headlines by slaying the non-existent dragon of consolidated representation.

NACS will fight to ensure that the intent of some members of Congress to reform business practices in Washington does not have a negative impact on the legislative process as it affects the interests of NACS retail members. Reform proponents may ultimately restrict access to the legislative process, but NACS will make certain your voice continues to be heard.

Have a good weekend.

John Eichberger
Vice President, Government Relations