A proposed New York regulation would force trade associations to disclose the full dues payment of any member who pays over $5,000 in dues – and trade associations are not happy about it.

Trade associations are joining forces to scale back proposed ethics regulations implementing ethics reform legislation New York Governor Andrew Cuomo (D) signed into law last year.  The law requires for-profit and tax-exempt groups that spend more than $50,000 a year and at least 3% of their budgets on New York lobbying to report the names and amount of all sources of funding over $5,000 to the state ethics commission, the Joint Commission on Public Ethics (JCOPE).

Many trade associations spend only a small portion of their assessed dues on lobbying activity.  However, the Proposed Source of Funding Regulations, which were intended to force 501(c)(4)s to disclose donors, would require the full amount of the dues payment to be reported to JCOPE rather than the portion that is actually used for lobbying activity.  For example, a trade association that collected $2 million in dues (over $5,000 from each source) and only spent 3%  of those funds ($60,000) on New York lobbying, would need to report the entire $2 million to JCOPE.  Disclosing the full amount of dues to JCOPE may misrepresent a trade association’s lobbying activity to the public.  Additionally, trade association dues are generally not public and many trade associations would like it to remain that way.

The proposed rulemaking is currently open for public comment.

Tags: disclosure, lobbying, New York, trade association
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Photo of Angelle Smith Baugh Angelle Smith Baugh

Angelle Smith Baugh is of counsel in the firm’s Election and Political Law and White Collar Litigation practice groups. She has significant experience in broad-based crisis management, advising clients on legal and political matters presenting complex risks.

Angelle’s practice focuses on defending companies and individuals…

Angelle Smith Baugh is of counsel in the firm’s Election and Political Law and White Collar Litigation practice groups. She has significant experience in broad-based crisis management, advising clients on legal and political matters presenting complex risks.

Angelle’s practice focuses on defending companies and individuals in high-profile congressional investigations, as well as other criminal, civil, and internal investigations. She represents clients before House and Senate Committees, as well as in criminal and civil government investigations before the Public Integrity Section of the Department of Justice, Federal Election Commission, and the Office of Congressional Ethics.

She assists companies and executives responding to formal and informal inquiries from Congress and executive branch agencies for documents, information, and testimony. She has experience preparing CEOs and other senior executives to testify before challenging congressional oversight hearings.

Angelle also has experience and expertise navigating federal and state ethics laws, and provides ongoing political law advice to companies, trade associations, PACs, and individuals.

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