Former Iowa Lt. Gov. Gregg’s new job leading Iowa Banking Association won’t violate state lobbying laws, officials say

DES MOINES — Adam Gregg, Iowa’s lieutenant governor and the second in command to Gov. Kim Reynolds for the past seven years, resigned last month to take a position as head of the Iowa Bankers Association, a statewide organization that advocates for Iowa banks to the state and federal governments.

Gregg, whose resignation took effect immediately, will go from being Reynolds’ right-hand man to becoming the next leader of an organization that lobbied on 135 pieces of legislation at the Iowa Capitol over two years.

As the incoming president and chief executive officer of the Iowa Bankers Association, he will replace leader John Sorensen at the end of the year.

Iowa law prohibits former government officials from lobbying on legislation for two years after leaving their government position. However, while Gregg will become the head of the Iowa Bankers Association, he will not directly lobby on behalf of the organization. That is why, state officials say, he can lead the association without running afoul of the lobbying law.

Gregg’s transition is an example of what has become called the revolving door: government officials leaving their government jobs to become lobbyists. At the federal level, nearly 500 former members of Congress are lobbyists, according to the Center for Responsive Politics.

Gregg had served as Iowa’s lieutenant governor since 2017, when he was selected by Reynolds when she acceded to the governor’s office.

Advocates for government transparency and accountability, like the Center for Responsive Politics, express caution about the revolving door.

“While officials in the executive branch, Congress and senior congressional staffers spin in and out of the private and public sectors, so too does privilege, power, access and, of course, money,” the Center says on its website.

In Iowa, there are many former state lawmakers among the current list of registered lobbyists, including former legislative leaders like Mike Gronstal and Bill Dix from the Iowa Senate.

One expert on Iowa state government said the revolving door can go both ways. Timothy Hagle, a political science professor at the University of Iowa, said it can become problematic if a former government official’s lobbying benefits the government agency for which he or she previously worked.

However, Hagle said, former government officials can bring expertise to a lobbying position that can foster a productive working relationship between the government and the private sector that benefits residents.

“If you have, whether it's a government official of whatever sort, whether it's somebody that's an elected position, or even administrators that sort of give gifts to or manage, and say, give gifts, but, you know, provide funding for some type of business, whatever it happens to be, and then go out, take a job with that business immediately afterward. So it's sort of that feathering the nest kind of a thing along those lines that's certainly a problem,” Hagle said.

“On the other hand, on the pro side of this, is that sometimes it's good to have experts on both sides of the equation,” Hagle said. “So if you have somebody that comes in from a private business, comes into a government position, that person may know more about how a particular government works, how to who to talk to, and how to get things done, to get the business to work better with government some particular way.”

Iowa Bankers Association an active lobbying group

The Iowa Bankers Association registered as lobbying on 135 bills during the 2023 and 2024 sessions of the Iowa Legislature, according to state lobbying records. The group had 10 registered lobbyists for the 2023 session and 11 for the 2024 session.

The Bankers Association supported bills that would reduce Iowa’s taxes, opposed changes to state regulations of credit unions, and lobbied on bills that dealt with banking regulations.

Gregg, as president and CEO of the group, will not be among that group of lobbyists who directly engage state lawmakers.

“I intend to fully comply with applicable Iowa law and guidance from the Iowa Ethics and Campaign Disclosure Board. I have no plans to register as a state-level lobbyist during the two-year period required under Iowa law, and I was hired with the knowledge that I would be subject to these rules,” Gregg said in a statement to The Gazette through the Iowa Bankers Association. “The Iowa Bankers Association has a strong and respected team at the Iowa Capitol that will continue to represent the interests of Iowa bankers.”

Gregg went on to note that in addition to lobbying on legislation, the Iowa Bankers Association operates two for-profit subsidiaries — a mortgage company and an insurance company — and provides services to banks including compliance education and guidance, marketing services, human resources support and development programs for new banking leaders.

Gregg said he also will represent Iowa’s banking industry on numerous community- and business-focused boards.

“In sum, there are plenty of non-lobbying responsibilities to keep me busy leading a large and complex organization like the IBA,” he said.

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State oversight board gave relevant opinion in 2013

In 2013, Iowa Gov. Terry Branstad’s office asked the Iowa Ethics and Campaign Disclosure Board for a formal opinion regarding his former chief of staff, Jeff Boeyink, taking a private sector job in government affairs and relations.

Specifically, the governor’s office asked the state board whether state law permitted Boeyink in his new position to lobby the governor’s office, state agencies, officials, or employees of the state executive branch.

In its formal opinion written by legal counsel, the board stated that for two years Boeyink was prohibited from lobbying before the governor’s office or any state agency, official, or employee with whom he had substantial and regular contact as the governor’s chief of staff.

The board’s formal opinion also concurred with the governor’s office on a number of hypothetical activities that were permissible for Boeyink. The board’s opinion stated it was permissible for Boeyink to directly lobby any state agency, official, or employee with whom he had only intermittent, brief, occasional or insubstantial contact as the governor’s chief of staff. And the opinion determined it was permissible for Boeyink to work with the governor’s office on legislation or other policy so long as he did not advocate for a specific course of action.

“Iowa’s public employees and officials have a legal obligation to ensure their positions aren’t abused for personal gain. Our government ethics and lobbying laws are designed to prevent corruption with targeted restrictions that don’t excessively restrict the rights of former public servants, including their right to pursue professional opportunities outside of government,” Zach Goodrich, the current executive director and legal counsel of the Iowa Ethics and Campaign Disclosure Board, told The Gazette in a statement.

“If there were ever a question regarding his conduct as CEO of the Iowa Bankers Association, I expect Mr. Gregg would proactively consult our office to ensure compliance with the laws we enforce, just as he did during his tenure as lieutenant governor,” he said.

Comments: (515) 355-1300, erin.murphy@thegazette.com

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