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Abstract

Although lobbying play~ a key role in stat.e, government, helping to shape the legislative agenda, the profession is la.rgely a mystery to the general pubhe.

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NYSA numbers
1473 B1793 03A
Date Loaded
27 Jan 2005
Box
7119. ETS Testimony, National Association of Smokers (Chris Jacobson)
Folder
Lobbyists - Region IV
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State Region 4

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How lobbyists shape laws behind the scenes By Paul A. Rix F rom the long, dark confer- ence table in his Madison office, lobbyist James Wimmer has a panoramic view of the Capitol. Wimmer's second-floor perch, handsomely decorated with waterco- lor paintings, robust high-back chairs and wall-to-wall carpeting, affords him swift access to the Legislature, the governor's office and a multitude of Capitol insiders who can attest to Wimmer's lobbying skills. Although lobbying play~ a key role in stat.e, government, helping to shape the legislative agenda, the profession is la.rgely a mystery to the general pubhe. There are occasional bursts of publicity (usually bad) but it's mostly a universe dominated by informa- tion, committee hearings, legislative compromises and political fund-rais- Top guns on the circuit pocket fees exceeding $200,000 a year while serving five, 10, 25 or even 60 mas- ters, much to the envy of the typical grunt lobbyist who makes only $20,000 to $30,000 in his first years on the tour. Wimmer is well qualified to be one of our guides into this world. He's been at it since 1971 and consistently ranks as one of the most successful practitioners regardless of which par- ty is in power. Wimmer is a big man. Not tall but brawny. Powerful shoulders and thick neck engorged during his ruffian days as a University of Wisconsin grider. He flip~ off his green Tyro.lian hat and top coat and plops down m one of the inviting chairs, taking a break from a busy day. We discuss his start in lobbying, his style and some of the do's and don'ts FE~RU~Y 19~1 27 T128862502
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of the trade and what, if any, advice he has t'or the would-be lobbyist. Our conversation triggers an idea and he exouses himself ~ look for a file in the large business desk across the room. The document is app.r.opriately called Leg~slatwe Axioms tor the Be- ginning Lobbyist." In it are gems like "Keep a low profile ... Play defense whenever possible... If you hear it, don't repeat it; if you see it, don't re- port it." Those words of wisdom ap- parently have served Wimmer well since his inauguration to the lobbying circuit in 1971. Be it Republican or Democrat ad- ministration, Jim Wimmer consis- tently ranks as one of the most sue- cessfui contract lobbyists on the block. Former chairman of the state Democratic Party and key aide to Coy. Gaylord Nelson, Wimmer has managed to collar and retain clients such as Blue Cross and Blue Shield, Exxon, the American Stock l~xchange and Control Data by relying on a prof- itable mix of wit, strategy and long- time acquaintances. "Staying powcr around here is rcal important," says Wimmer, who looks a bit like White House advisor How- ard Baker. "The key is having political insight and knowing how to cast an idea meritoriously. You can't dress up a piece of shit in a silk purse• Your word is your bond." Jim Wimmer is one of 300 lob- byists registered with the secretary of state's office in Madison. Independent lobbyists like Wimmer represent an array of im- pressive corporate clients: IBM and 3M, }~irst Wisconsin and Johnson Controls. Tourism and liquor groups, utilities and communications associ- ations also enlist the services of ex- perienced lobbyists to protect their interests in the legislative process. The lobbyist's world is largely un- known to the average citizen. (Didn't Wimmer say something about keep- ing a low profile?) It is a universe dnminated by information, commit- tee hearings, legislative compromises and political fund-raisers; where top guns on the circuit collect fees ex- ceeding $200,000 while serving five, 10, 25, even 60 different masters, much to the envy of the typical grunt lobbyist who pockets $20,000 to $30,000 his first years on the tour. During peak legislative times, lob- byists put in 20-hour days that may Continued. page 3I MICHAEL VAUGHN, 51. One of the best. An intellectual who can grasp the subject matter o17 a situation as well as the politics. Chicago native, graduate of the UW Law School. An attorney with Murphy & Desmond in Madison since 1972. Before that, was with the Legislative Reference Bureau. Clients range from 82.6 billion Northern Natural Gas conglomerate to muck farmers and central Wisconsin potato and vegetable growers. Often takes anti-regulatory stance. "Environmentalists are waiting for me to die." llas major contracts with Wisconsin Bankers Association, American Insurance Association and Wisconsin Institute of Certified Public Accountants. One of his sweetest victories was passage of a bill allowing Wisconsin banks to acquire out- of-state institutions, lronicali.~; one of the major proponents of the bill was Marine Corp., which is about to be acquired by Bane One of Columbus, Ohio. T!28862503
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i ~f :he he hy )re 2s WILLIAM GERRARD, 63. Dean of the lobbying corps. Colorful, gregarious, shrewd. Knows everybody, has few worlds to conquer. "i'm not out knocking on doors trying to drum up new business." La Crosse native and real estate broker. Former chairman of state Democratic Party and compatriot of ex-Oov. Patrick bucey. Member of UW Board of Regents. Clients include Heileman Brewing, Wisconsin Chiropractic Association, Wisconsin Realtors Association, Soo Line Railroad and First Bank System, Minneapolis. "Lobbying's not the good-old- boy network. If a guy doesn't like you, you're out." Most welcome victory: after years of committee setbacks, floor defeats and gubernatorial vetoes, legislation was signed by Gov. Thompson in the budget bill requiring employers to offer insurance coverage for chiropractic care. Gerrard also represented ITT Consumer Financial Corp. of Minneapolis on a bill allowing finance companies to raise their interest rates on small consumer loans. GARY GOYKE, 40. A good talker who enjoys his job. Boasts of having more clients than any of his competitors -- 60 -- and sports the largest, most experienced lobbying staff in Madison. Some think he is overextended. He's a native of Oshkosh and a graduate of Lourdes Academy and St. Mary's College in Minnesota. Took vows of poverty, chastity and obedience at a Christian Brothers novitiate, but left before being ordained. Became interested in a political career after working on IIubert Humphrey campaign in 1972. Switched to lobbying in 1983 after a stinging defeat in bid for re- election to Senate. Client list includes Wisconsin Academy of Trial Lawyers, Wisconsin State Telephone Association, Wisconsin Wholesale Beer Distributors and Wisconsin Newspaper Association. Major coup: nursemaiding passage of a holding company bill permitting Wisconsin Electric Power Co. and other state utilities to diversify. a legislator, I always tried to get my name in the paper, but not any more. FF.BKI*ARy I'+~'+ 29 TI28862504
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po~er around here is real important." WILLIAM BROYDRICK, 39. A hustler. Knows who to move and when. Has a stable of 25 clients. Milwaukee Democratic legislator from 1978 to 1981, Occasionally rubbed conservative lobbyists the wrong way when he was in the Assembly. Resentment among some of his competitors when he leaped from legislating to lobbying. "Broydrick complained about business when he was in the Legislature," grumps one in-house lobbyist, "but who did he turn to when he wanted to lobby? Business." Broydrick also was a former aide to U. S. Rep. Les Aspin and former Gov. Patrick Lucey. He and his wife, Cynthia, who once was a Milwaukee alderwoman, are partners in Madison lobbying firm. Notable clients include Marine Corp., Milwaukee Metropolitan Sewerage District, Wisconsin Hospital Association and Motorcycle Industry Council, Arlington, Va. Most demanding assignment: representing Australian financier Alan Bond during debate on anti-takeover legislation sought by G. Heileman Brewing Co. JAMES WIMMER, 52. Prime minister of the circuit. Diligent, gregarious but may be r6sting on laurels. Likes to concentrate on legislative leaders, but he lost his best contact, Senate Majority Leader Tim Cullen, when Cullen joined Thompson administration. Wisconsin Dells native and a boy wonder at 22 who ran Gaylord Nelson's successful gubernatorial campaign in 1958. Ten years later, chaired state Democratic Party. Major clients: American Stock l~xchange, Associated General Contractors of America, Blue Cross and Blue Shield United of Wisconsin, Control Data, Exxon and the Tobacco Institute. Big breakthrough came in 1980, when he successfully lobbied for an increase in the state's gasoline tax, the first increase in 15 years. The result provided money for much-needed road and bridge repairs m and lots of business for another Wimmer client: the Wisconsin Road Builders Association. 30 Coet~e~TE P~POP, T T!28862505
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JAMES HOUGH, 46. Veteran of ~s , the Capitol scene since 1966. Former executive director of the State Bar of Wisconsin and an attorney for the state's Legislative Reference Bureau. Full-time lobbyist since 1978. Reserved and thorough. Hard worker, though he may be easing back a tad. Recently hired ex- Badger basketball star Joe Ghrnelich who rs spent five years with IBM, a Hough client. Hough cultivates the insiders, targets key committee chairs on economic development. "It's impossible for me to meet 132 legislators. I have to identify the ~ top people." Client list includes Johnson Controls, Marathon Oil, 3-M Go. and the Wisconsin Shorthand Reporters -' Association. Helped another client, 5 I tleileman, win anti-takeover legislation last fall. From page 28 entail contacting dozens of people and translating myriad issues w all outside the public eye. "As a legislator, I always tried to get my name in the newspaper, but not any more," says one ex-Democratic legislator turned lobbyist. In helping shape Wisconsinqaw, the lobbyist stands watch on the perim- eter, quietly but persuasively fulfilling his client's needs, cultivating legisla- tive leaders and gently soliciting the advice of the governor. What makes the lobby!ng circuit tick? "Money," says Chris Tackett, president of the Wisconsin Merchants Federation in Madison. "Not cash on the barrel or bribes, but the [finan- cial] importance of moving or delay- ing a bill that affects a client. "Look at the big issues: Corporate takeover, interstate banking, utility holding companies and credit cards. That's where business is, and that's where the business lobbyist should The lobbyist who is an ex-legislator, party official or Capitol insider defi- nitely has an advantage. There is a certain stature in having worked at th..e, Capitol. Legislators and lobbyists ahke find it difficult to cut the cord despite the p.assage of time. Business lobbyist Kirby Hendee served in the 1957 Senate when there was.much wailing about.lobbying reg- ulatmns. He has .part!c~pated in and observed the leglslat~ve process for four decades. in 1975 testimony to a Senate com- merce committee, Hendee advised lawmakers to "recognize that lobby- ing, in its variegated hues, perfo.rms a useful, if not indispensible functton in the legislative process." The smart legislator, Hfindee cau- tioned, will not ignore lobbyists -- he will use them. Moreover the legislator will use them against one another, picking their brains to gain the fresh- est information so that he (the.legisla- tor) doesn't waste time. It may take years before a legislator and a lobb.yist strike fertile gr.ound o.n complex issues. Hendee beheves ~n playing for the long pull. With 132 legislators to deal with, he takes time to shop around and avoids pushing for speedy commitments. The lobbyist learns to avoid the limelight, confrontation and threats. "Don't draw your guns unless you're ready to shoot" and "Don't draw lines in the sand because you might lose" are words to live by and could easily qualify for Wimmer's list of axioms. Personality, hard-work and credi- bility are essential ingredients for any FFJIRPARY 19~k~ 31 TI28862506
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lobbyist. Schmoozing, networking and appearances at legislative fund- raisers carry brownie points. Enter- prising lobbyists must have a reser- voir of eclectic skills enabling them to slip in and out of the public and pri- vate sectors with measurable success. Look at James Klauser. Whoever thought he'd retorn to state govern- ment -- and as Gov. Tommy Thomp- son's closest adviser at that -- after building up a lucrative lobbying prac- tice. Klauser, as much as anybody, is the driving force behind Thompson's zeal for renewed economic development and crisp rapport with business. It is the grand finale of the fall legislative session. The floor calendars are packed with enough issues to keep the best and brightest legislators on the prowl: Minimum wage, parental Here to stay. Here to grow. Here's to Wisconsin! You hear a lot of talk about companies entering and leaving our state. Dataforms is one company that is proud Io be a Wisconsin company-and we plan to stay. We've grown and pros- pered in Wisconsin because of the many fine companies we value as our customers, our dedicated workers who take pride in their pro- duct, and the support of our local community. Thanks, Wisconsin. We're looking forward to even better years ahead. Dataforma, Inc. 16600 W. Glendale Drive New Berlin, Wisconsin 53151 (414) 786-2600 The best forms company for your business forms. leave for workers, retirement bene- fits. Two blocks from the Capitol, the superstars of the lobbying corps are huddled in the Tap Room at the Madi- son Club, where etiquette and deco- rum lend themselves to privacy, re- laxation and business. Older male patrons recline in cushy sofas perusing newspapers. The scent of quality cigars and pipe tobacco enhances the decor. Flip through the Association of Wisconsin Lobbyists handbook on file at any large corporation. Notice the mug shots of the registered lobby- ists. More than 80 percent are men. Notice, too, how many of these lobby- ists are affiliated with businesses con- trolled by men, whose companies are based in Milwaukee, Chicago, New York, Philadelphia and Washington, D.C. The days of the old-boy network may be fa.d..ing, but men still do the hiring and tiring when it comes to lob- bying. Founded in 1909, the Madison Club is a regular haunt for long-ball hitters like Wimmer, Jim Hough, Mike clients don't seem to mind if I am a woman or an orangutan, but if my integrity is questioned, I might as well wait on tables." Vaughn, Bill Broydrick, Gary Goyke and Bill Gerrard. Business lobbyists regard the Madison Club as the olace of refuge. Women are permitted', bot the Madison has a distinct male aroma. One of the women who can move comfortably through this inner sanc- tum is Sharon Cook of Milwaukee. Cook was first exposed to the Legisla- ture as a 19-year-old page and, for 13 years, did not stray from that exis- tence. Effervescent and thorough, TI28862507
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Cook worked for the Legislature's Joint Finance Committee, lobbied for the Department of Natural Resources and advised ex-Senate Majority Lead- er Tim CuIlen. Three years ago, Cook left the pub- lic dole for a job with the Milwaukee law firm of Cook and l~'ranke "be- cause I desperately needed a change. Madison can be too all-consuming, all the polities." to alert Hauke to his oversight. "I was always the onlywoman at those bank meetings and still am." M&J, of course, is awestruck by her performance. "In a word," says Judy Murphy of the bank, "spectacular." Michael Haffield, secretary of the cor- poration, seconds that motion. "Sharon has an ability to get in to see legislators. She can be diplomatic, but when we sit down she doesn't mince words." M&I isn't her only bread-and-but- ter account. Durit~g the summer bud- get feud, Cook lobbied to defeat a city of Milwaukee admissions tax idea op- posed by another one of her clients, the Bradley Center Corp. The issue tied up the Legislature early into the morning one day. Cook's hopes tee- tered as the in-fighting escalated. She ultimately claimed victory when Thompson vetoed the proposal from the budget. "I knew then I was accepted," says Cook. Continued, next page were no promises, no arm twisting, l just tried to call in a few chips." As a full-time lobbyist, Cook rel- ishes the diversity of issues thrown her daily. Whether it be .representing Universal Foods on a btote~hnology matter or scouting the legislative mood for the Milwaukee Brewers, Cook and her clients recognize that credibility and moxie outweigh gen- der. "My standard line is, 'I'm not the Cook of Cook and Franke, I'm not Bob Cook's (the co-partner) daugh- ter, and I'm not a lawyer but 1 can lobby.' "My clients don't seem to mind if l am a woman or an orangutan, but if my integrity is questioned I might as well wait on tables." Many of Cook's principal clients are businesses or firms headed by men. Cook remembers the countless meetings during the 1985 session on an interstate banking bill backed by one of her clients, M&I Marshall and Ilsley Bank of Milwaukee. At a meeting called by Rep. Thom- as Hauke, D-West Allis, then Assem- bly banking committee chairman, Hauke remarked, "Well, gentlemen, come into my office." The only wom- an in the crowd, Cook didn't hesitate Wick: Business building business. Wick knows what it takes to build a successful business. After all, we've dedicated more than 30 years toward designing and constructing quality buildings for businesses across the Midwest. Using our proven post-frame construction technique and professional engineering, Wick can help you plan a building that meets your needs best, utilizing lhe most efficient layout to save you time and labor. What's more, Wick builds economy and flexibility into every design. Which means you can enjoy energy-saving features to keep monthly operating costs low and choose from a wide range of attractive colors and custom features to match your business needs and preferences. Plus, you'll also save 20-4096 over other construction methods. At Wick, we make it our business to assure you of top quality construction and design. Business building business... That's Wick Buildings. Mazomanie, W153560 T!28862508
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All Need To Know About Insurance. B. Hall Frank B. Hall can show you the most cost effective balance between your risks and your insurance coverage. We'll also make that balance easy to understand. You'll know what your coverage is, how much protection you have and why you have it. We pool national scale research and resources for all our clients, large and small. As one of the world's largest risk management companies we can give you clout. As an independent insurance agency representing a variety of insurance companies such as the CNA Insurance Companies, we can offer you many advantages. We're free to select from the portfolios of several major insurance companies. So whether you're a CEO, CFO or Risk Manager looking for a way to control the rising costs of risk management, call our President, ConmdJ. Metz to set up a survey and a quotation. Because if all you know about insurance is Frank B. Hall, you already know enough. 276-6700 Frank B. Hall & Co. of Wisconsin, Inc. One Plaza East, Suite 1100 Milwaukee, v, rlsconsin 53202 1-800-242-9601 R umors of graft and corrup- tion among lobbyists fill the Capitol corridors all the time, fueling Secre- tary of State Douglas La Foilette's impassioned campaign to crack down. Yet lobbying in Wisconsin is largely an above-board, self-policing oper- ation, despite La Follette's efforts for stricter reporting of fees and penses. La Follette's staff trumpets $50 and $100 penalties for late lobbyist regis- tration and delights in dispatching messengers to the Capitol press room to deliver word of wrong-doing. It's almost as if La Follette, himself an ex-legislator, yearns for the mo- ment when his field auditor will swoop down on a legislator palming a lobbyist's cash. Before the lobby law was changed in 1957, legislators and lobbyists bought meals and drinks for each oth- er. It's still done, but discreetly. And who cares? There are all sorts of ways to bribe. Flattery is one. Doug La Follette got his dander u,p. when former Attorney General Bron son La Follette abused his friendship with lobbyist James Boullion over out- side business interests. Sleazy? Per- haps. Criminal? Doubtful. Despite a lingering paranoia in the secretary of state's office, auditor Jeff Lewitzke says there is no case pend- i.ng worthy of the maximum $1,000 fine for a lobbyist or maximum $5,000 levy for a lobbyist's olient. La Follette's misguided pursuit of lobbyists only raises suspicions among .the practitioners. "It smacks of a pohce state," says Thomas Con- signy, in-house lobbyist for Wisconsin Power and Light Co. F und-raisers are an essen- tial part of the delicate lob- byist-lawmaker relation- ship. Most legislators thrive on fund-raisers and use contributions from individuals and political action committees (PACs) to finance their campaigns. PACs are groups of like-minded people who give to a similar cause. Businessmen, doctors, lawyers and teachers use PACs to funnel tidy sums to their favorite candidates. Lobbyists not only are expected to attend fund-raisers but are often di- rected to arrange them. Lobbyists howl about the many fund-raisers, but down deep they rathei" enjoy get- ting out to restaurants for drinks and nibbles and the chance to escort a client in from Milwaukee to meet leg- islators and brag about their score- cards. Since his election 10 years ago, Continued, page 36 T!28862509
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