Lobbyists Find Detour Around Latest Ethics Rules (Pay to Play thru State Balls)

wsj ^ | 011709 | BRODY MULLINS and ELIZABETH WILLIAMSON

[Fred]

Lobbyists and corporations have found an opening in the latest congressional-ethics law that allows them to pay for special access to lawmakers and members of the incoming Obama administration during next week's inaugural festivities.

President-elect Barack Obama was a vocal champion of rules enacted last year that prohibit companies and lobbyists from buying anything worth more than $10 for lawmakers. But well-heeled interests have found a way to circumvent the ban by partnering with "state societies" that are throwing parties to celebrate Mr. Obama's inauguration.

These Washington-based nonprofits, whose members include lawmakers, congressional aides, lobbyists and executives from a given state, aren't subject to the ethics law -- even though their social and charitable activities are paid for with corporate money.

State societies' parties will help lobbyists skirt rules. Above, a 2005 inaugural ball sponsored by Texas State Society.

Mr. Obama's home state of Illinois, for example, is holding its own inaugural ball on Monday, the night before Mr. Obama is sworn in. It is offering executives of Motorola Inc., Exelon Corp., and the American Road and Transportation Builders Association a chance to pay big money to dine and pose for photos with Illinois lawmakers and incoming Transportation Secretary Ray LaHood, who recently retired as congressman from the state. The price: $5,000 to $55,000, event organizers said.

Hawaii, Mr. Obama's birthplace, has invited companies and lobbyists who pay as much as $25,000 into a roped-off VIP lounge at its Tuesday night affair, where they can mingle with influential policy makers. Among the drawing cards: Hawaii Sen. Dan Inouye, the new chairman of the Senate Appropriations Committee, and Gen. Eric Shinseki, a Hawaiian tapped to lead the Veterans Affairs Department.

Takers so far include Lockheed Martin Corp., which gave $25,000 for

[DieHard the Hunter]

> These Washington-based nonprofits, whose members include lawmakers, congressional aides, lobbyists and executives from a given state, aren’t subject to the ethics law — even though their social and charitable activities are paid for with corporate money.

Whoa! In some countries that would be highly illegal.

[freekitty]

Here’s one that should be investigated. Maybe this time since they didn’t have the you know what with the Clintons they will.

[Vaduz]

Lobbyists and corporations have found an opening in the latest congressional-ethics law /lobbyists to congress wink thanks guys