Money still pours to lobby on state issues

NASHVILLE — Southeast Tennessee businesses and groups spent as much as $1.48 million over the last year lobbying lawmakers and executive branch officials on issues ranging from health care to natural gas charges, figures show.

More than a dozen entities in the Chattanooga and Cleveland areas spent at least $660,881, according to filings with the Tennessee Ethics Commission. The numbers are based on broad reporting categories required of groups that influence the General Assembly.

Actual spending totals likely are higher because local governments and government entities are not required to report their activity to the Ethics Commission. The agency was created in the wake of the FBI’s Tennessee Waltz bribery sting involving five sitting or former lawmakers.

Among local entities, Chattanooga-based BlueCross BlueShield of Tennessee easily topped the list.

Between Oct. 1, 2008, and Sept. 30, 2009, the nonprofit health insurer spent at least $460,000 and as much as $585,000 on lobbying, according to its two biannual reports.

The insurer fielded a nine-member team comprising three in-house lobbyists headed by David Locke and six freelance lobbyists, including two former lawmakers, who work during the legislative session.

“We lobby for the benefit of our members and the status of health care in Tennessee and our lobbyists work to educate and inform elected officials on the affordability and quality of care in our state,” BlueCross spokeswoman Mary Thompson said.

Ms. Thompson said “there wasn’t one particular issue that stood out,” but she noted, “suffice to say, there are numerous (coverage) mandates that our lobbyists are asked to investigate, analyze and testify about.”

BlueCross’ report shows that it spent $250,000 to $300,000 on lobbyist compensation and less than $10,000 on lobbying-related expenses from Oct. 1, 2008, through March 31, 2009. From April 1 through Sept. 30, it spent $200,000 to $250,000 on lobbyists and $10,000 to $25,000 on expenses.

Expenditure ranges in reporting requirements are broad. For example, a business that reported spending less than $10,000 could have spent anywhere from nothing at all to $9,999.99.

Ms. Thompson said Friday that company figures show BlueCross actually spent $204,964 on its lobbyists during the April-to-September period. The actual lobbying expenses were $10,062.

GAS BILL BATTLE

The Chattanooga Manufacturers Association, meanwhile, spent far less lobbying but was involved in a major fight with Chattanooga Gas Co. (AGL Resources). That was over attempts by Chattanooga Gas and other natural gas distributors to make it easier, critics said, to hike rates annually for homeowners and businesses.

The CMA reported lobbying compensation at under $10,000 and lobby-related expenses at between $10,000 and $25,000 between April 1 and September.

CMA President Ray Childers did the lobbying as part of his job. He said the expenses largely involved legal costs and paying a finance expert to fly repeatedly from Texas to Nashville to testify before the House Commerce Committee.

“We brought him up, I think, on two occasions when he didn’t get to testify,” Mr. Childers said.

Mr. Childers said he learned lobbying years ago while working for Du Pont. He said CMA lobbies “to explain and provide information. It’s to prepare the legislators to make informed decisions. That’s all. It’s nothing more than that. I’m a purveyor of information.”

AGL Resources, the parent company of Chattanooga Gas, said in its two biannual reports it spent $20,000 to $50,000 on four lobbyists between Oct. 1, 2008, and Sept. 30, 2009. It reported zero to $20,000 on expenses.

Two other natural gas distributors outside Chattanooga, Atmos Energy and Piedmont Natural Gas, were also involved in the fight. They reportedly spent between $85,000 and $185,000 on lobbyists and between zero and $40,000 on expenses.

Piedmont also kicked in $1,626 on an “ice cream social.” But while lawmakers may have lapped up the ice cream, the gas distributors’ bill didn’t pass. It could be brought back up in the second half of the 106th General Assembly that starts Jan. 12.

UTILITY GIANTS FIGHT

Another major legislative fight came when Chattanooga’s EPB and other public electric power distributors clashed with cable interests over pole-attachment fees distributors charge cable and phone companies.

They also fought over efforts by power distributors to expand fiber-optic television services outside the areas where they provide electricity.

A nonprofit, city-owned agency, EPB is not required to file with the Ethics Commission. But EPB President Harold DePriest estimated the agency spends about $65,000 for the law firm Miller & Martin to defend or advance the company’s interests annually at the Capitol.

Another firm, Southern Strategies, gets about $5,000 a month when lawmakers are in session, he said.

Mr. DePriest said EPB is “always up there defending” itself from cable efforts to reduce pole-attachment fees, which he estimated earn EPB about $1 million a year.

As for EPB’s effort to expand its fiber-optic television services outside its current service area, Mr. DePriest noted, “we fight that battle every year. We’ve not been successful.”

The Tennessee Telecommunications Association, which was involved in a number of legislative fights last session including an early fight with AT&T, reported spending $300,000 to $400,000 on lobbyists and expenses ranging from zero to $20,000. It also said it spent $8,622.88 on a “blue grass” bash for lawmakers.

Comcast reported spending $100,000 to $200,000 on a lobbyist and between zero and $20,000 on lobbying-related expenses.

One of Chattanooga’s newest businesses, Volkswagen, also used Miller & Martin to lobby in Nashville. VW reported spending $20,000 to $50,000 on compensation and zero to $20,000 on expenses.

It also reported spending $699.43 for a breakfast and ride-and-drive event for lawmakers featuring its TDI Clean Diesel Technology, and $2,853.84 on its May 14 wall-raising ceremony.

Meanwhile, the Ocoee River Outfitters Association reported spending between $10,000 and $35,000 on and $20,000 on lobbying-related expenses.

Lawmaker in September were treated to a free trip down the Ocoee. The rafters reported spending $954.61 on the event.

Local governments don’t have to report, but they do lobby on Capitol Hill.

Chattanooga Mayor Ron Littlefield’s spokesman, Richard Beeland, said the city no longer uses paid lobbyists but in-house staff.

“The ones we’ve used are all staff people and are minimal (costs) at most. Just the travel cost associated with them going to Nashville for lobbying purposes,” Mr. Beeland said.