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Navigating the Maze – Government Affairs for the Small Business Owner

It was 1979 and I was sitting high school government class wondering why I would ever need to understand the three branches of government and what it takes to pass a bill. Fast forward to today and I find myself sitting in yet another (I’ve visited many over the years) congressperson’s office in the Cannon Building.

“It’s about energy independence and climate change and protecting the consumer from the ever-increasing cost of electricity,” I say to the legislative aid.

A group of small-scale wind turbine manufacturers and I are working to pass legislation that would give every American a tax rebate if they invest in a small-scale wind generator. One thing they didn’t teach me is all the twists and turns a bill has to take for any hope of success. Less than 3% of the bills introduced into congress ever make it into law. No wonder Congress has such as hard time getting anything done.

In most cases, small businesses don’t need to change laws. But when a good new law or incentive can stimulate an industry to benefit of the economy or the country, why not? You can change laws that benefit your company at all levels of city, county, state or federal government.

Passing a Bill 101

First of all, you need a product or idea that benefits people and would be acceptable to a majority of people. You then you work on the legislation text.

Each level of government has a different process for passing a bill. At the city/county level, you might need one sponsor on the council. You propose your idea and everyone votes. That’s the simple example. In reality, you must think about budget (how it gets paid for), deal with opposition, and go back several times until the details are ironed out.

At the state and federal levels, things are much more complicated. This is when you’ll need good council. Most people call them lobbyists. (Yes, these are folks like Jack Abramoff, but honest). Here it can take months or, more likely, years before you get a bill passed. There are lobbyists that represent all types of industries. You should pick one that works best for you. A state lobbyist might cost a few thousand per month. But don’t base your decision on price; base it on who they know and how effective they’ll be. A federal lobbyist is in another league. For any good firm, you’re looking at tens of thousands of dollars.

The legislative process is not unlike the Hampton Court Palace Maze - lots of dead ends and a countless turns.

The most important thing to remember is support. Support from the right people on the right committees. Support from trade groups and other organizations. Lastly, support from people writing letters to their representatives.

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About July 2007

This page contains all entries posted to BizBox Blog on Slate in July 2007. They are listed from oldest to newest.

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