Special interest groups paid lobbyists about $20.4 million last year in an effort to sway public policy on issues ranging from Medicaid to workers' compensation to legalized fireworks.

A Des Moines Register analysis of state data showed 943 groups hired lobbyists during the year ending June 30, paying them an average of $21,645.

That's up by about $1.5 million over the previous year, in which groups spent about $18.9 million on lobbyists.

The data provide a broad look at who is vying for influence at the Iowa Capitol during a year in which Republicans took control of the House, Senate and governor's office for the first time in nearly 20 years.

"With the Republicans taking control of the Senate, there certainly may have been a perception that clients could advance legislation that they couldn’t previously advance," said Jim Carney, a veteran lobbyist who represents a range of organizations.

With the new power dynamic, he said, many groups may choose to "lobby up," either to capitalize on their new opportunity or to fight perceived threats.

"We do get retained to oppose legislation, just like we get retained to pass legislation," Carney said. "Sometimes it’s a bigger issue to fight it than to pass it."

There were 123 organizations that reported hiring lobbyists in 2017 that did not report doing so in 2016. They accounted for about $1.1 million in spending.

DATABASE:Who is lobbying at the Iowa Capitol?

Iowa isn't alone in seeing an uptick.

Randy Haynie, president of the National Association of State Lobbyists, said state-level lobbying is increasing across the country.

"I think we all have gotten busier with issues on the state level that used to be decided on a federal level," said Haynie, who has lobbied the Louisiana legislature for 38 years.

That's occurred naturally as the federal government intentionally hands more autonomy to the states, he said. But it's also been amplified by Congressional gridlock, which has forced groups to take their fight to state capitols across the country.

"Both the private sector and the government sector are trying to say 'OK, is there something else we can turn over to the states to see if they can sort it out and put some parameters on it,'" he said.

Increased spending yields results

Fireworks companies were among those who increased their lobby presence this year as they pushed for a review of the state's fireworks laws. Companies that sell consumer fireworks increased their spending from $83,000 last year to $133,000 this year.

The increase paid off. Then-Gov. Terry Branstad in May signed a bill legalizing the sale and use of consumer fireworks, despite complaints from safety and medical groups who worried the change would lead to injuries and property damage.

Similarly, alcohol companies nearly tripled their spending from $81,000 last year to about $231,000 this year.

Craft distillers have been arguing for years that they should be allowed to pour cocktails using the spirits they produce at their distilleries and offer tastings of their products, just as breweries are able to do. Things appeared to reach a turning point when Branstad convened a working group on the topic with the goal of introducing legislation bringing greater parity to the market.

Some of Iowa's small distillers increased their lobbyist spending by a couple of thousand dollars, but the big push came from Templeton Rye Spirits, which hired lobbyists for the first time, paying them $108,014.

"It really did help," said Jane Knutson, the company's chief financial officer.

Branstad ultimately signed a bill giving distilleries greater freedom in the marketplace. For Templeton, it means being able to pour samples as visitors tour its new production facility.

"You can’t imagine having someone come up and doing a tour of a ($26 million) facility and then not being able to do a tasting," she said. "So we were very proactive in trying to get the law changed."

The American Progressive Bag Alliance, which represents the plastic bag industry, made its first foray into Iowa politics this year as well. It spent $25,000 on lobbyists who argued in favor of a bill that blocked cities and counties from enacting plastic bag bans. Branstad signed the bill into law in March.

Biggest spenders

The Iowa Association of Community College Trustees was the single group that spent the most on lobbyists, tallying a bill of $289,598.

Executive Director MJ Dolan said the group is often focused on issues related to workforce development that affect community colleges. But much of their work is focused on protecting their state funding.

"We receive the least amount of funding per pupil from the state of all (higher) educational institutions and we educate the most students," she said, citing numbers from the state's nonpartisan Legislative Services Agency. "So that’s always something that we’re working on is to make sure that we’re able to maintain those dollars."

Broken down by industry, the biggest spenders were those in health care. Private health care companies, advocacy groups, nonprofits and dozens of professional associations spent a combined $2.8 million on lobbyists.

The Iowa Hospital Association paid 10 lobbyists a total of $265,800, making it the second-largest spender overall. And the Iowa Medical Society, a professional organization representing doctors and physicians, was the third-highest spender, pouring another $204,759 into its lobbying efforts.

"Nothing is more important to our members than advocacy," said Scott McIntyre, vice president of communications for the hospital association. "There are very few, if any, industries that are as regulated and as affected by government action than health care."

He said Medicaid, which covers health care for about 600,000 poor or disabled Iowans, is a "tremendous" issue for hospitals and other health care providers in Iowa, where the state has shifted management of the program to for-profit companies. Nationally, debates over the future of the Affordable Care Act continue to generate uncertainty for state-level providers.

Other powerful industries, such as the tobacco and pharmaceuticals industries, also spent big to influence Iowa legislators this year.

Altria, one of the world's largest producers and marketers of tobacco products, spent $172,701 on lobbyists in Iowa.



And unlike the hospital association, which registered its opinion on dozens of health care-related bills throughout the year, Altria's lobbyists registered on just four pieces of legislation. Among those was a budget bill ultimately signed by the governor that included language regulating the sale of e-cigarettes and "alternative nicotine products," which are seen by many as a threat to traditional tobacco products.

Pharmaceutical companies including Merck and Pfizer together spent a combined $545,000 in Iowa, up from about $351,000 last year.

Those companies lobbied on a bill that tries to limit a practice known as "fail first," in which patients have to prove cheaper medications are ineffective before an insurance company will pay for the more expensive drugs their doctors recommend. The House and Senate approved the bill unanimously and Branstad signed it into law.

Other private businesses representing a massive range of industries weighed in at the Capitol to the tune of about $3.5 million, and industry organizations and trade groups contributed another $3.6 million.

The Legislature passed a host of business-friendly legislation during its 2017 session, including restricting collective bargaining rights for public-sector union workers, cutting workers' compensation benefits, nullifying local minimum wage increases that exceed the state's minimum wage and more.

DATABASE:Who is lobbying at the Iowa Capitol?

State agency spending

Among those spending big on lobbying the state: state agencies themselves.

State agencies, boards and commissioned tallied about $1.5 million in lobbyist expenditures during the last year, with the Iowa Board of Regents leading the pack at $176,214 in spending.

"Our enterprise touches so many aspects of life in the state that we need to have an effective lobbying team down there working on our behalf," said Josh Lehman, a spokesman for the Regents.

He noted the organization is a $5.8 billion operation employing 50,000 people and educating 80,000 students. Those operations can be affected by proposals related to its hospitals, research facilities, agriculture programs and more, he said.

"We need to be able to advocate for that," Lehman said.

It's not unusual for state agencies to lobby their own state legislatures, according to the National Council on State Legislatures. But 10 states outlaw the use of public funds on lobbying.

In total, 49 state offices and organizations reported spending money on lobbying activities, at an average of $29,654 each.

The Iowa Economic Development Authority, which has a mission of growing the Iowa economy and often works to recruit businesses to the state by creating tax incentive packages, reported spending $171,000 lobbying lawmakers.

Tax incentives, particularly for businesses, have been a growing issue of contention in Iowa as the state faces millions in budget cuts from lower-than-expected revenues. Many Democrats see them as corporate giveaways, while Republicans want to scale back carve-outs to lower tax rates across the board.

Event spending

Lobbyists and special interest groups also reported spending $325,976 on events and special functions for legislators during the 2017 session — up from about $311,000 the previous year.

Often, those events are as small as a spread of donuts and coffee in a Capitol meeting room, giving lawmakers a reason to mingle with members of various organizations.

But some, like an event hosted by the Iowa Association of Realtors at the Des Moines Embassy Suites, are more lavish. That event topped out at $23,628.

The association lobbied on dozens of bills during the year, including one that shortened so-called "statute of repose" periods for homeowners. Under the bill, which Branstad signed into law, Iowa homeowners have less time to file lawsuits over hidden defects caused by contractors.

By the numbers

Lobbyists representing 1,035 different groups registered to lobby at the Iowa Capitol during the last two years.

They came from 35 states , plus Washington, D.C., and Canada.

Those groups reporting paying lobbyists about $39.4 million to represent their interests.

In addition, groups reported spending $636,976 on events, breakfasts and other functions targeted at lawmakers.

About the data

Iowa requires groups that lobby the Legislature and the executive branch to report the costs of those lobbying efforts to the state. A public database available through the Legislature's website includes all salaries, payments and reimbursements made to lobbyists on behalf of their clients.

But the data also is limited and likely underestimates the scope of spending at the Iowa Capitol. It does not, for example, encompass campaign contributions from individuals associated with special interest groups or outside spending from political action committees. It also relies on organizations and their lobbyists to provide complete and accurate information; it is not routinely audited by the state.