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Illinois Associations Seek Restraining Order Against Lobby Registration Act
12/18/2009
The Illinois Society of Association Executives has filed suit in Sangamon County requesting a temporary restraining order preventing the implementation of P.A. 96-0555 on the effective date of January 1. The suit filed against Illinois Secretary of State Jesse White, who would be implementing the new law, is the first legal action ever taken by the statewide association of 501(c) organizations.
"The citizens of Illinois and our legislative process are best served when all voices that have a stake in the law-making process can be heard," says ISAE Executive Director Pam Tolson. "Associations and other non-profits are often the voice of citizens and consumers when legislation is being considered that affects segments of our society. This act would effectively silence many of those voices."
ISAE membership is comprised of association executives who represent citizens from every walk of life in Illinois. These include associations of teachers, principals, nurses, home daycare providers, small businesses, pharmacists, mechanics - neighbors, family members, and colleagues who all belong to one or more membership associations or contribute to charitable associations.
Public Act 96-0555 increases the Illinois lobbying registration fee from $150 for charitable organizations and $350 for all other organizations, including not-for-profit membership organizations, to $1,000 per organization and lobbyist. Other provisions include moving from bi-annual reporting to weekly reporting, even when there is no advocacy activity to report. The suit seeks to overturn the act that would take effect on January 1, 2010.
"Non-profits are already vulnerable due to economic conditions and shrinking budgets," Tolson says. "The majority of ISAE members are small organizations with small budgets. This increase and other provisions will no doubt force many out of advocating on behalf of the public and their members, many of whom are unable to speak on their own behalf."
PA 96-055 is considered by many in the association arena to be unconstitutional. According to ISAE Board President Sara Decatoire, "We consider advocating on behalf of our members to be an exercise of the First Amendment right to free speech. Licensing fees that infringe on the exercise of a First Amendment right are permissable only to the extent necessary to defray the cost of administering the licensing program. In this particular case, the State of Illinois cannot argue that the increased registration fee is needed to administer its registration program, as there is currently a surplus of more than $300,000 in the Secretary of State's coffers with the current program."
Forty-one out of 50 states charge annual lobbyist registration fees of $150 or less or have no lobbyist registration fee. Only two states have annual registration fees exceeding $350. Texas charges $500 for for-profit organizations and $100 for not-for-profit organizations, and Massachusetts charges $1,000 for for-profit organizations and $150 for not-for-profit organizations.
"Associations play a vital education role in the legislative process, as legislators and their staff are not experts on all the issues brought before them," Tolson emphasizes. "Legislators can't possibly anticipate or perceive all of the impacts of various pieces of legislation on the citizens of Illinois. The citizen voice through associations is critical to ensuring that all facts are considered and weighed when these decisions are made. In reality, many of the thousands of Illinois associations only provide information to the legislators and their staff; they don't 'lobby' for specific legislation. However, state law requires anyone who speaks to state legislators and certain state officials to be registered under this act."
Tolson points out that associations contribute greatly to the state's economy. In 2006, for instance, the 150 ISAE member associations held 1,100 events in Springfield alone, drawing over 67,000 attendees to the region and generating more than $2.1 million in accommodations and other revenue. When Chicago-based associations are taken into account, 2,000 additional membership organizations serve more than 37 million members and have an $11 billion impact to the benefit of Chicago and the State of Illinois.
"Association activities contribute jobs, taxes, and business for the state," Tolson says. "To jeopardize such revenues in our current economy by limiting the activities of the organizations that generate them is not only unconstitutional, it is unconscionable."
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Keywords: Chicago, ISAE, association, non-profit, charitable, organization, legislation
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