The law says that "'expenditure' means a payment, distribution, loan, advance, deposit or gift of money or anything else of value and includes a contract, promise or agreement, whether or not legally enforceable, to make an expenditure. 'Expenditure' includes sums expended in connection with lobbying, including research, consulting and other lobbying preparation and travel, meals and lodging." 2 V.S.A. § 261(5).

Lobbyists and their employers must file disclosure reports with the Secretary of State and the Legislative Council on or before March 25, July 25, and January 25.

• The March 25 report covers the period from January 1 through the end of February.

• The July 25 report covers the period from March 1 through the end of June.

• The January 25 report covers the period from July 1 through the end of the calendar year.

Each employer's report must include three types of expenditures for the reporting period:

1. Total lobbying expenditures.

2. Total compensation paid to lobbyists.

3. Itemization of each gift worth more than $5 that has been given to a legislator or administrative official.

The process for employers:

• First, report the total amount of expenditures, including compensation paid to lobbyists and the value of all gifts.

• Second, report the total compensation paid to lobbyists. There is no requirement that your report link specific amounts to individual lobbyists. When compensation is for a person whose lobbying activities are incidental to regular employment, compensation may be prorated on the basis of the value of the time devoted to lobbying. 2 V.S.A. § 264(a)(2).

• Third, report every gift with a value greater than $5 that was made by (or on behalf of) the employer to (or at the request of) one or more legislators or administrative officials. Such gifts must be itemized, whether or not they were made in connection with lobbying. 2 V.S.A. § 264(a)(3). With respect to each gift, report the nature of the gift, the value of the gift, the identity of any legislator or administrative official who requested the gift, and the recipient of the gift.

Each lobbyist's report must list two types of expenditures for the reporting period:

1. The total amount of the lobbyist's unreimbursed lobbying expenditures and each gift worth more than $5 that has been given to a legislator or administrative official. (In the case of the lobbyist's report, expenditures do not include compensation or expenses reimbursed by the employer. 2 V.S.A. §§ 261(3) and 264(c)).

2. Each gift worth more than $5 that has been given by or on behalf of the lobbyist to a legislator or administrative official. Gifts for which the employer has reimbursed the lobbyist should be reported by the employer, not the lobbyist.

   A gift with a value of less than $5 should be reported as an expenditure if made in connection with lobbying and the lobbyist is not reimbursed for the cost of the gift.

The law also requires lobbyists who are "compensated, in whole or in part, by an employer for the purpose of lobbying on behalf of another person, or group or coalition" to provide the following additional information: the name of the employer, the name of the person, group or coalition on whose behalf he or she lobbies, and a description of the matter for which the lobbyist has been engaged by the employer. 2 V.S.A. § 263(4).

The law does not require lobbyists or employers to disclose specific amounts of expenditures and compensation. In each case, for lobbyists and employers, the total amount may be rounded off to the nearest $200.

The Secretary of State will send each lobbyist and employer a disclosure form at least 30 days before the end of each reporting period. The forms also are posted on this Web site.

Yes, except that research conducted to decide whether or not to lobby is not an "expenditure."

For example, if the object of the research is to provide your client an analysis of the judicial, administrative, and legislative options for resolving a legal problem, the research costs would not be a reportable expenditure. The client is trying to decide whether or not to engage in lobbying. Sums expended on research after the client has focused on a solution that requires administrative or legislative action or has actually engaged in lobbying a legislator or administrative official would be reportable.

Yes, even if the policy position was developed by the employer for use in many states. The expenses involved in this effort may be prorated.

If the document is used by lobbyists for purposes of obtaining legislative or administrative action, the expense is reportable.

There is no exemption for educational materials. If the materials are provided in connection with legislative or administrative action that will affect the association's interest, the association must register once the $500 threshold has been crossed and must report expenses incurred in connection with preparing and distributing the materials.

The Agency of Transportation and the Transportation Board regulate railroads and are required to conduct inspections to determine the condition, manner of operation and safety of all railroads. Since the principal purpose of the "inspection trip" is to facilitate inspection by the agency and the board, the trip would not be considered administrative lobbying even though it also promotes goodwill and involves communications relating to administrative action.

A 1993 memorandum from the Office of the Secretary of State concluded that the train ride in this example would therefore not be a reportable expense.

Upon further reflection, however, we believe the presence of the legislators was overlooked. Since they have no inspection duties beyond their general obligation to acquaint themselves with matters that may require legislative action, the train ride for them would fall within the definition of "goodwill" lobbying, and as a result, a prorated portion of the cost of the train ride would be a reportable expenditure.

Similarly, the expenses associated with a trip for legislators to tour Vermont Yankee, which promotes goodwill and involves communications relating to legislative action, also would be reportable.