AT&T, Visa Plan Parties With Lawmakers at Political Conventions

By Jonathan D. Salant and Timothy J. Burger

Aug. 24 (Bloomberg) -- New ethics rules barring lavish parties for individual members of Congress at the national political conventions won't stop AT&T Inc. and other influence- seekers from throwing big bashes so they can rub shoulders with lawmakers at this year's gatherings.

AT&T is sponsoring receptions at the Democratic convention in Denver, which begins tomorrow, and the following week when Republicans meet in Minneapolis-St. Paul. Among the invitees are convention delegations from Maryland, home of House Democratic Majority Leader Steny Hoyer, and Texas, home of Representative Joe Barton, ranking Republican on the House Energy and Commerce Committee.

Bethesda, Maryland-based Lockheed Martin Corp., Dearborn, Michigan-based Ford Motor Co., and Charlotte, North Carolina- based Duke Energy Corp. also are sponsoring receptions.

The quadrennial political conventions will be the first since Congress enacted last year's law to restrain lobbying. After enactment, the Senate and House ethics committees adopted guidelines that let many of the receptions proceed.

``They signed the new rules with one pen and created exemptions with another,'' said former House counsel Stan Brand. ``It's a little bit of a charade.''

The legislation pushed by the Democratic majorities in Congress last year bans gifts from lobbyists and prohibits convention parties to honor individual lawmakers. For example, the Distilled Spirits Council of the United States can't replicate the tributes it sponsored in 2004 for former Senate Republican Majority Leader Bill Frist and Senator Tom Daschle, the Democratic leader at the time.

No Longer `Ethics Free'

``These are not ethics-free zones any more, but there is enough latitude to still have very nice or lovely receptions,'' said Kenneth Gross, a former Federal Election Commission lawyer now at Skadden, Arps, Slate, Meagher & Flom.

Washington-based Discus, the trade group for liquor companies such as Bacardi Corp. and London-based Diageo PLC, is again holding convention events, without honoring any individuals.

``We're going to be very, very cautious,'' spokesman Frank Coleman said.

San Antonio, Texas-based AT&T, the largest U.S. phone company, contributed to the host committees funding the conventions in addition to hosting receptions for the delegations. It ranks among the most frequent sponsors, paying for at least 10 events, according to a list published by the Sunlight Foundation, a Washington-based watchdog group.

Blue Dog Party

In Denver, AT&T will hold a reception for the Blue Dog Coalition, a group of House Democrats who bucked party leaders to support immunity for telecommunications companies that helped the government wiretap Americans without warrants.

The company is throwing a party for the California delegations at each convention. Four California Democrats -- Hilda Solis, Lois Capps, Jane Harman and Anna Eshoo -- are members of the House telecommunications subcommittee, as are Republicans George Radanovich and Mary Bono Mack.

AT&T spokeswoman Claudia Jones said the conventions let the company participate in the political process and ``give AT&T a unique opportunity to present and display the many leading-edge technologies and products that we offer'' to consumers.

While AT&T focuses on delegations with important lawmakers, the financial services industry is honoring Congress's entire freshman class. The five newest House Democrats -- Bill Foster, Andre Carson, Jackie Speier, Don Cazayoux and Travis Childers -- joined the Financial Services Committee after reaching Congress.

Freshman Parties

Sponsors of the freshman party include Visa Inc., the world's largest credit-card company. Congress is considering legislation that would impose new rules on credit-card companies, including a ban on sudden increases in interest rates.

``America's political conventions have always been, and continue to be, an important part of our nation's democratic process,'' the San Francisco-based company, which is hosting an event at the Republican convention as well, said in a statement.

Akin Gump Strauss Hauer & Feld LLP, the No. 1 lobbying company with $18.1 million in reported fees during the first half of this year, will honor partner Vernon Jordan at the Denver convention rather than a lawmaker. Among others, Akin Gump represents Aetna Inc. and General Electric Co.

The No. 2 lobbying firm, Patton Boggs LLP, is holding a Republican convention reception to honor party leaders such as Chairman Mike Duncan.

Absent Companies

Missing from the festivities this year is the trade group for U.S. banks, the Washington-based American Bankers Association. It has held parties in the past to honor House and Senate banking committee members. Also absent: Fannie Mae and Freddie Mac. The two mortgage-finance companies together spent over $1 million to help pay for the 2004 conventions. Fannie and Freddie both pulled out of sponsoring an event at the Republican convention this year.

There are still plenty of opportunities for mingling even if ``the most blatant examples of yesteryear are perhaps not as evident,'' said Nancy Watzman of the Sunlight Foundation.

The nation's largest business lobby, the U.S. Chamber of Commerce, will make its presence felt at the conventions with buses designed to promote its issues and register voters.

The new ethics rules ``absolutely cramped our style,'' said Bill Miller, senior vice president for political affairs.

``There's this we-don't-really-want-you-here attitude,'' he said. ``It isn't that surprising to see people saying, `Maybe I'll go fishing instead of going to Denver and Minneapolis.' I'm sure it will look and feel like past conventions, but with a lot fewer suits.''

To contact the reporters on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net; Timothy J. Burger in Washington at tburger2@bloomberg.net.