Leglislature After X-Mas Sale!
Georgia likes to brag about what an excellent place to do business it is. Part of that is seeing what price it takes for the Legislature to be sympathetic to business.
It turns out were in the middle of the pack, but nearly every state costs less than you’d think. Now, of course, certain rules apply here. The price goes directly with the ease of understanding the issue and the interest of the general public directly in it. That’s why in issues of the death penalty, flag amendments, etc, the price is too high for money to have any effect. It’s too easy to understand and it tugs directly at the emotions of too many.
However, in terms of reasonably arcane elements of regulatory legislation, money is everything.
The Wall Street Journal looked at ‘tangible net benefit requirements‘ for mortgages and lobbying from 2001 to 2004. Now, lots of people are concerned with making sure their states have these laws, but from 2001 to 2004, it was pretty arcane stuff. Ameriquest hired a lobbying firm to go from state legislature to state legislature to fight the inclusion of the requirements in their laws. It was a good investment. It turns out it does not take a lot of money to buy a legislature and Georgia is in the middle of the pack.
The most expensive, of course was California. At $10 million, it’s 3 sigma out. Texas was $190,000, Florida and New Jersey were $180,000, and Georgia $160,000.
The effort in Georgia occurred in 2001. Of that 160K, $5000.00 went directly to then Lt. Governor Mark Taylor. In addition to direct campaign contributions, Ameriquest bought and gave away Rolling Stones tickets. It’s a sobering thought that literally, there are people who cannot afford their mortgage because Mick and Keith were on tour.
They tried to offer Senator Vincent Fort a contribution and he declined, but argued vigorously with the Ameriquest representatives. In the end, Fort lost as both the Senate and the House stripped tangible net benefit requirements from their bills, and they went on to pass by large margins.
With Mr. Taylor gone, $155,000 seems as though it’s a relatively cheap cost if your company can turn millions in revenue with a small regulatory change. Goodness knows how much total is really spend of wooing legislators.
So what can be done? Most companies hire lobbyists who then have to register with the clerks office as paid lobbying people. Those folks should have to make public on the web, within 24 hours of the transaction, a detailed public statement of what money they spend and on whom and what they spent it. Have a reception for the legislature? You have to declare who you invited and how much the event cost. Did you buy tickets for a Senator? You have to declare immediately.
The legislators should also have to declare what they received and from whom they received it. In combination, two quick things will happen. First, Creative Loafing will have a lot more fodder and second, people who do their own lobbying will be much more influential as they do not have to register. That makes the whole thing far more democratic and the more people who are involved the better.