.bodytext {float: left; } .floatimg-left-hort { float:left; margin-top:10px; margin-right: 10px; width:315px; clear:left;} .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 10px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 10px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 10px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Brice Oakley remembers when legislators were considering a bill that would have banned strip clubs in Iowa from serving alcohol. A group of topless dancers who were concerned that measure would hurt their tip income hired a lobbyist to help defeat it.

“I don’t know who he was, but they had a guy up there representing them,” said Oakley, a partner with Avenson, Oakley & Cope Consulting, one of the state’s most active lobbying firms. “I would defy anyone to name a business or an activity that’s otherwise lawful that doesn’t have an advocate up on Capitol Hill this session,” he said. “Everyone is in some way represented.”

Oakley, who has served in roles ranging from state legislator to legal counsel for former Gov. Robert Ray, is among hundreds of individuals who have registered as lobbyists for this legislative session.

In addition to contract lobbying firms such as Oakley’s and attorneys who compete for clients, lobbyists also include executive directors of nonprofit organizations and a broad range of industry and special-interest groups, while many others represent state and local governmental agencies.

Last year, 775 organizations registered to lobby the Legislature, and it appears the business of influence is booming. Iowa organizations last year reported paying more than $8.5 million in compensation and expense reimbursements to their lobbyists, a $1 million increase from the 2006 session. A similar number is expected to be active as the second session of the 82nd General Assembly begins its work this week, or about five lobbyists for each of the 150 legislators.

If that ratio seems high, it’s not unusual in the legislative realm. Across the country, approximately 40,000 lobbyists also outnumber state lawmakers by an average of 5-to-1, according to The Center for Public Integrity, a nonprofit investigative journalism group in Washington, D.C. Nationally, more than 56,000 organizations spent a record amount – nearly $1.3 billion – to send their lobbyists to statehouses in 2006.

Among other Midwestern states, Minnesota organizations were among the top spenders for lobbyists’ services, at $53.2 million last year. Wisconsin lobbyists were paid $26.8 million, and Nebraska lobbyists earned about $10 million.

In Iowa, lobbyists are prohibited from making campaign contributions to lawmakers during the session, and may not give any legislator a gift worth more than $3. There is no upward limit, however, on how much organizations may pay lobbyists to represent them, said Charlie Smithson, director of the Iowa Ethics and Campaign Disclosure Board. (Smithson, by the way, noted that he is a registered lobbyist for the board).

“The only prohibition is that a lobbyist can’t take a contingency fee; it can’t be a results-based contract or contingent on the outcome of legislation or a rule,” he said.

Smithson said he’s not familiar with any state attempting to limit the amount of money that lobbyists can receive for their services. “I’d imagine you would run into First Amendment problems trying to do that,” he said.

In the reputation business

With all the negative press that Washington, D.C., lobbyists have received over the past several years, it’s easy for people to be cynical about lobbyists on the state level as well. However, administrators who oversee lobbyists in Iowa say that by and large, the lobbying organizations and their representatives are a conscientious lot.

“I think everyone is more aware and cautious, because it’s gotten attention in other states and nationwide,” Smithson said. The board regulates lobbying of executive branch agencies, while the chief clerk of the House of Representatives monitors legislative lobbying. (See sidebar.)

Whomever they represent, lobbyists are only as good as their reputation, said Mike St. Clair, who seven years ago partnered with Tom Fey to form Capitol Edge LLC. “What people don’t realize is that many times we’ll often give (a legislator) both sides of the argument,” St. Clair said. “A legislator will say, ‘Well, who’s in the opposition; what’s their point of view?’ Frankly, if you don’t do that honestly, you’re not going to be working there very long, because they expect you to be straight with them, and your credibility is all you have.”

Getting started as a lobbyist is as difficult as launching any new business, said Fey, a Democrat who represented a district in Davenport in the Iowa House from 1982 to 1990. He’s among an estimated 20 former legislators who now lobby in Iowa, according to The Center for Public Integrity.

“The fortunate thing for me when I went out on my own was that my wife was gainfully employed, and I was used to not making a lot of money as a lawmaker,” he said. “While serving in the House, I did run some political campaigns. So I figured I didn’t have a lot to lose to try it for a year or two. I was fortunate to land some good contracts right out of the chute. And over the years, you pick up a reputation, and that’s how you build your client base.”

Like many contract lobbyists, St. Clair got started by partnering with an experienced lobbyist, whom he subsequently bought out upon his retirement.

Lobbying is “an art form, not a science, I think,” he said. “And getting clients doesn’t seem to have a particular rhyme or reason either. I think once you’re established, it’s mostly referrals from other lobbyists. Somebody else has a conflict and they can’t take it, or they’re working for someone else in the same industry and they’re looking for somebody else to recommend who will work hard and carry their weight when you have issues together. So some of our best referrals have been from fellow lobbyists.”

Another approach

One of the newer lobbying firms locally is PolicyWorks, which two lobbyists, Justin Hupfer and John Cacciatore, launched in 2006 as a subsidiary of the Iowa Credit Union League.

“The thought process behind it was to create a one-stop shop where Iowa businesses and associations could go for their advocacy needs,” said Hupfer, the firm’s chief executive. In addition to three lobbyists, PolicyWorks’ staff includes two public affairs people, a regulatory department with two attorneys and one administrative person.

“Twenty years ago, it was often sufficient to hire a lobbyist; now, you need to coordinate efforts,” he said. “We wanted to create an entity that has all those resources (such as public affairs, grassroots organizing and consulting) at its disposal.” The firm is representing nine clients this session, in industries ranging from energy to health care and financial services.

Oakley, despite his long resume in governmental affairs, said: “It took me two years to really get comfortable with the process and to learn the personalities and what they care about. There’s no quick fix on that.”

His firm’s business strategy is similar to that espoused by retired pro golfer and entrepreneur Jack Nicklaus, he said.

“We want to do business with and represent organizations and companies that are among the best in their fields, and we price our product so that we do it over a long period of time,” Oakley said. “Because of that, we very seldom represent clients on single issues. Companies that are there for just one issue and then want to leave are basically riding on the shoulders of all those other clients you’ve had for a long period of time. It primarily means that a legislator has to just flat-out trust your word because they know nothing about this client.”

Knowing how the legislative process works is just as valuable as knowing the legislators, and each lobbyist generally has a pretty good idea of the compensation they need to get for their services, Fey said.

“Every business is a little bit different, too,” St. Clair said. “If you have a potential client who comes to you, and it’s in a niche area you’re already in, obviously you can bid that at a lower rate because you’re already covering those committees and are already familiar with those issues.” There is value in having multiple clients, Oakley said.

“The secret, in our view, of having a successful lobbying firm is that by having a considerable number of clients, you can positively touch every one of those legislators or policy-makers in a way that they consider important to them. If you add value to their service on things that they care about, they will help our clients on issues that they are less interested in.

“One of the things we tell our clients and prospective clients: ‘We’re no better than your message.’ If your message doesn’t make sense to the policymaker, it’s not going to happen. They are not going to do what Brice Oakley wants because of his charm and good looks.”